Formerly a niche asset class, industrial outdoor storage (IOS) is now firmly in the institutional investment spotlight, Partner Valuation Advisors says in its latest Industrial Outdoor Storage Market Report & Outlook. E-commerce growth and supply chain resilience strategies are the primary demand drivers, with sites near major transportation corridors especially sought after.
Authored by Vytas Norusis, MAI, EVP and national practice lead for IOS at Partner Valuation Advisors, the report cites a diversifying tenant base. Construction firms, utilities, and renewable energy operators are increasingly becoming tenants, reducing risk concentration and broadening the sector’s appeal beyond the trucking industry.
The report cites a stratified, two-tier market for IOS. Premium sites (by-right zoning, clean environmental profiles, infill locations) command institutional capital and aggressive pricing, while repositioning sites trade at discounts and attract opportunistic buyers.
For the balance of 2026, the market outlook is cautiously optimistic, with strong momentum expected to continue. Key risks include logistics market uncertainty, zoning hurdles and potential IOS inventory shrinkage as prime sites are redeveloped. Conversely, freight market softness may create opportunities to convert obsolete truck terminals into IOS uses.
Don’t miss Carter Andrus, Chief Operating Officer of Prologis, as the keynote interview at Connect Industrial Midwest— taking place Tuesday afternoon, March 10, 2026, at Joe’s Live in Rosemont, IL.
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