The Weekly Take from CBRE Investment Opportunities in Industrial Outdoor Storage [Encore - 6.23.25]
Sep 2, 2025
Brian Fumara, a seasoned Vice Chair at CBRE with over 25 years in industrial deals, joins Miles Harndon, a VP with two decades in commercial real estate, and Nick Firth, CIO of Industrial Outdoor Ventures, to delve into the booming Industrial Outdoor Storage (IOS) sector. They discuss the remarkable sub-3% vacancy rates and soaring rents, the hurdles of zoning that create demand for existing sites, and how IOS is emerging as a crucial player in logistics and utilities. The conversation also touches on the impacts of electrification and evolving logistics technologies.
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IOS Defined: Land Over Building
- Industrial Outdoor Storage (IOS) is low-density single-tenant industrial real estate with FAR typically 0.25 or less.
- The outdoor yard is the primary revenue driver while buildings are a small component of site value.
Rents Blend Building And Land Metrics
- IOS rents often blend per-building and per-land metrics, with buildings commanding higher $/sf because they are a small part of the asset.
- Truck terminals may price by door per month while yards price per acre or per land square foot.
Supply Blocked By Entitlements
- New IOS supply is constrained by local opposition and hard-to-get entitlements, making existing sites scarce.
- Scarcity and limited new development drive higher valuations for operating IOS assets.