Industrial Outdoor Storage
Today, I’d like to talk
about a segment of industrial real estate you’ve probably never heard of, much
less considered. It’s called IOS.
No, not the operating
system that powers your Apple devices. In this case, IOS stands for Industrial
Outdoor Storage. And until a few years ago, almost no one was talking about it.
Then COVID hit.
Suddenly, IOS went from
an afterthought to one of the most sought after property types in commercial
real estate. Today, it is not just a niche. It is its own asset class, and
demand is exploding.
Why?
Because IOS sits right
at the intersection of three powerful forces.
First, the supply chain
broke and companies needed space fast. Not warehouse space. Yard space. Places
to store trailers, containers, equipment, and overflow inventory when buildings
were full and ports were backed up.
Second, service based
businesses never stopped growing. Plumbers, electricians, HVAC contractors,
landscapers, equipment rental companies, and construction yards all need a
place to park trucks, store materials, and operate close to their customers. In
infill markets like Orange County, that means outdoor space is essential.
Third, and this is the
big one, you cannot create more of it.
Orange County is built
out. Zoning is tight. Cities do not love outdoor storage. And many existing IOS
sites are legally nonconforming, which means they are effectively
irreplaceable.
So what happens when
demand surges and supply is fixed or even shrinking?
Prices go up.
Competition intensifies. And a once overlooked property type becomes a hot
commodity.
That is exactly what we
are seeing today.
Industrial Outdoor
Storage may not be glamorous. It is not shiny, it is not new, and it will not
win any architectural awards.
But it is functional.
It is necessary. And increasingly, it is valuable.
And here is the part
that should get your attention. If you own a piece of industrial land with yard
space, even if it looks rough around the edges, you may be sitting on one of
the most in demand and underappreciated assets in today’s market.
Tenants are not looking
for perfection. They are looking for usability. They need space that works.
Space that is secure, accessible, and close to their customer base.
That shift in mindset
is important.
Because in a market
like Orange County, where land is scarce and regulation is tight, the highest
and best use is not always the newest building or the most polished project.
Sometimes, it is simply well located dirt that solves a real operational problem.
IOS is no longer the
leftover. It is no longer the forgotten corner of industrial real estate.
It is now a critical
piece of the supply chain and a growing opportunity for those who understand
its value
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