The Weekly Take from CBRE Outside Chance: Investment Opportunities in Industrial Outdoor Storage
Jun 23, 2025
Nick Firth, CIO of Industrial Outdoor Ventures, Brian Fumara, Vice Chair at CBRE, and Miles Harndon, CBRE Vice President, delve into the dynamic world of Industrial Outdoor Storage. They discuss the impressive sub-3% vacancy rates and the strong demand for existing storage sites driven by zoning challenges. The trio highlights how IOS is becoming a hot target for major investors, paralleling trends in self-storage. They also explore the impact of electrification and logistics tech reshaping the sector, showcasing IOS's vital role in modern supply chains.
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IOS Defined by Outdoor Storage
- Industrial Outdoor Storage (IOS) mainly consists of outdoor areas with minimal building coverage, usually around 10-12%.
- Its main function is outdoor storage, not traditional warehouse usage which covers more area indoors.
IOS Supply Constrained by Regulations
- New IOS developments face strong NIMBYism and regulatory hurdles, limiting supply.
- This scarcity pushes existing IOS site values and rents higher.
IOS Supports Industrial Ecosystem
- IOS supports the industrial ecosystem by accommodating trucks, trailers, and equipment essential for logistics and construction.
- Its strategic infill locations near population centers and infrastructure maximize utility.