Commercial Real Estate's $200B Asset Class | Industrial Outdoor Storage

March 23, 2023   |   Industrial

As a leading provider of commercial brokerage services, SRD explores the rising popularity of commercial real estate's Industrial Outdoor Storage (IOS) sector.

SVN | Saunders Ralston Dantzler is a leading provider of commercial brokerage services, offering commercial properties for sale and top-notch commercial property management services. To assist our clients in the best possible way, our firm stays on top of emerging trends, including the growing interest in Industrial Outdoor Storage (IOS). In this blog post, we will explore the reasons behind the rising popularity of IOS and why it makes for an attractive investment opportunity.

The Rise of Industrial Outdoor Storage

While IOS has traditionally been considered an unattractive sector of commercial real estate, recent data shows it is now estimated to be a $200-billion asset class while on the verge of becoming predominantly institutional. Our firm has noticed an increased demand for IOS in recent transactions, with IOS properties being used to support businesses ranging from logistics to e-commerce.

                                                 Source: "$11.5 Million Off-Market Commercial Property Sale"

The growth in IOS can be attributed to several factors, including the rapid expansion of e-commerce, the need for more efficient logistics solutions, and businesses' increasing demand for cost-effective storage solutions. As this market and its related industries continue to evolve, the need for efficient and flexible storage solutions has never been more critical, which has driven businesses to invest in IOS properties.

Key Features & Advantages

As interest in Industrial Outdoor Storage properties grows, it's important to understand the key features and advantages that set them apart from other commercial real estate investments.

Flexible Usage

IOS properties offer a wide range of potential uses, such as laydown yards, truck terminals, or maintenance facilities. This flexibility ensures that property owners can adapt their properties to the ever-changing needs of various industries.

Lower Maintenance

IOS spaces generally require less maintenance than traditional warehouses and indoor storage facilities. This low-maintenance aspect can save investors time and money, making it a particularly attractive option for those just starting out in commercial real estate investing.

High Demand

The rise of e-commerce and logistics businesses has created a surge in demand for IOS properties, as these companies require outdoor storage solutions for their expanding operations. This heightened demand translates to increased potential for higher returns on investment.

Resilient Investment

IOS properties and other self-storage assets have been considered to be "recession-proof" due to their diversified uses and the consistent demand for storage solutions, even during economic downturns. This resilience makes them attractive for investors looking to build a strong and stable portfolio.

Attractive Returns

As the IOS sector becomes increasingly institutionalized, investors can expect to see more consistent and potentially higher returns on their investments. This, combined with the other advantages of IOS properties, makes them a compelling choice for investors looking to expand their portfolios.

If you are interested in exploring the opportunities that Industrial Outdoor Storage (IOS) can offer your commercial real estate investment portfolio, contact our advisors today. SVN | Saunders Ralston Dantzler is one of the leading commercial brokerage and property management providers across both Florida and Georgia.

With the growing popularity of IOS, it's important to understand the key features and advantages that set it apart from other commercial real estate investments. Our firm stays on top of emerging trends, including the increasing demand for IOS. We can provide professional property investment consulting services for clients learning to navigate and conquer the commercial real estate market.

To get started, explore our commercial property listings and contact me, David Hungerford, CCIM, to discuss your specific opportunities in this growing sector. Don't miss out on the chance to invest in an almost "recession-proof" and resilient asset class that holds the potential for high returns on investment.

David Hungerford
David aims to provide dynamic analysis strategies to locate the most efficient sites for each client. He is the mapping specialist within the firm which gives him an insider look on site selection and site-in-search analysis. David values each client as if they were his own family. His previo...