The formation of nearly 3.2 million households over the 24-month span ending in March, coupled with an 18% jump in online retail sales, has spurred tenant and investor demand for industrial outdoor storage (IOS) space. This demand occurs against a backdrop of limited supply within this sector.
Alan Pontius, SVP and national director of Marcus & Millichap’s Office and Industrial divisions commented: “As e-commerce continues to grow exponentially, IOS properties have become some of the most prominent niche commercial real estate investments available today.” He further noted that due to limited IOS supply there is a level durability highly favorable for investors as these lots serve a mission-critical support role in last mile distribution – garnering attention from investors on a broad scale.
