IOS demand is rising
Industrial outdoor storage (IOS) is surging as trucking and distribution demand remains steady, creating high returns amid limited supply and presenting an alternative asset class for regional distributors. IOS’s constrained supply could shift some users away from conventional warehouse footprints. (x.com)
Institutional buyers have been actively amassing IOS portfolios, and CBRE’s recent industrial outdoor storage coverage recorded sub‑3% vacancy and accelerating rent growth for the subsector in 2025. (cbre.com) Zoning, entitlement and permitting hurdles are the leading constraints on new IOS development, a factor CBRE and market commentators say is keeping usable outdoor yards scarce in logistics‑advantaged corridors. (cbre.co.uk) Regional brokerage MacLeod & Co. reports more than $260 million of IOS sale and lease transactions in the Inland Empire across the past three years and publishes 2024 sale comparables that span roughly $29.25/PLF up to $118.00/PLF. (macleodco.com) Specific Inland Empire comps in MacLeod’s November 2024 report include Primoris purchases at about $83.29/PLF, multiple user buys at $91.83/PLF, and a 62‑acre truck terminal that traded at $62.32/PLF in mid‑2024. (macleodco.com) CBRE and industry outlets characterize IOS as one of the best‑performing industrial niches, with recent investment activity and institutional interest outpacing several bulk industrial subsectors. (commercialsearch.com) Market research from Colliers and Landside/CargoWise documents occupiers — notably truck fleets, 3PLs and regional distributors — increasingly using IOS for trailer parking, equipment staging and short‑term overflow during peak freight cycles, prompting a partial shift away from conventional warehouse footprint solutions. (knowledge-leader.colliers.com)
