Industrial Outdoor Storage (IOS) Sector: Current State, Strategic Value, and Future Outlook (2025–2030)

Aerial view of an industrial outdoor storage and trailer yard with trucks and containers adjacent to

Introduction

Industrial Outdoor Storage (IOS) – including open-air trailer yards, container depots, and laydown yards – has rapidly emerged from an overlooked niche to a $130–$200 billion asset class by 2023. These properties are essentially low-coverage industrial sites (often <20% building coverage) used for storing trucks, trailers, containers, construction materials, and equipment. IOS facilities became indispensable during recent supply chain crunches, providing overflow container storage and trailer parking to relieve congested ports and distribution centers. Today, investors, logistics operators, and developers are increasingly recognizing IOS as a strategic real estate play offering steady cash flows, high demand, and long-term redevelopment upside. This briefing examines the current state of the IOS sector in 2024/25, its strategic value drivers, and the five-year outlook through 2030, with a focus on trailer yards and yard logistics planning.

Current State of the IOS Market (2024)

Over the past 18–24 months, IOS demand has surged on the back of e-commerce expansion and supply chain reconfiguration. By late 2024, IOS has firmly “institutionalized” as an asset class, with large investment firms assembling portfolios in what was once a mom-and-pop domain. Occupancy is exceptionally high – vacancy rates average only ~2.8% across top markets, roughly half the vacancy of traditional warehouses. Limited new supply (due to land and zoning constraints) and robust tenant retention have kept IOS essentially full in most major logistics hubs. Rents have accordingly skyrocketed: lease rates rose 20–40% on average since 2019, and some analyses show IOS rents more than doubling (123%+ increase) since 2020 – far outpacing standard industrial rent growth. In-place yard rents in 2024 commonly range from $5,000–$6,500 per acre per month in high-demand regions (equivalent to low-to-mid single digits per sq ft annually), with triple-net leases and 3%+ annual escalations now the norm. On the sales side, IOS properties trade at cap rates about 50–150 basis points higher than typical warehouse assets (i.e. yields in the ~5%–6%+ range versus ~4.5%–5% for prime industrial). Even so, investor appetite remains strong – drawn by low capital expenditures, minimal operating costs, and the optionality of owning scarce industrial land that can be redeveloped in the future.

Below is a summary of regional IOS market trends as of 2024:

Region	2024 Demand/Supply & Pricing Trends
Western U.S.	Severe parking deficit (~2,100 trucks per available spot); extremely tight supply drives highest IOS pricing (e.g. Southern California yards often exceed $1–2 million per acre). West Coast port volumes rebounding, which is restoring container flow and fueling yard demand.
Southeastern U.S.	Constrained supply (~800 trucks per spot shortfall); strong user demand from e-commerce growth and expanded Southeast port capacity. Rents showing robust growth, with coastal infill sites commanding >$6k per acre/month. Ports like Savannah and Charleston support high utilization of nearby IOS yards.
Texas & South-Central	Tight supply (~700 trucks per spot deficit). Booming logistics hubs (Dallas–Fort Worth) and border trade through Texas (e.g. Laredo) spur heavy IOS needs. New yard development in 2024 has slightly eased vacancy in Dallas (vacancy ticked up from essentially 0% as new sites delivered). Land values in inland Texas markets range ~$400k–$700k per acre, with rents around $5k/acre/month.
Northeast & Mid-Atlantic	Scarce infill land and strict zoning/NIMBY hurdles constrain IOS supply near ports and cities. Demand is persistent around major seaports (NY/NJ, Norfolk, etc.), though East Coast port volumes have leveled off after recent surges. IOS pricing is high – well-located yards carry premium rents, and core coastal assets trade at low cap rates (often ~5% or below) given intense investor competition.

Table: Regional IOS market conditions in 2024, including relative truck parking deficits and pricing trends by region. Regional differences are notable – for example, the Western U.S. faces the most acute shortage of truck parking and outdoor logistics space (over 2,100 trucks competing per available parking spot in the West), which has pushed California’s IOS rents and land prices to the top of the charts. In contrast, the South-central and Southeast regions have somewhat less extreme shortfalls (on the order of 700–800 trucks per spot), yet still endure substantial deficits driving strong rent growth. Overall, virtually every U.S. region is undersupplied with industrial outdoor storage to some degree, resulting in tight occupancy and pricing power for landlords nationwide.

Strategic Value of IOS Assets

From an investment standpoint, IOS properties offer a compelling combination of yield, stability, and optionality. Key characteristics and advantages include:

• Higher Yields vs. Traditional Industrial: Because IOS deals have been historically overlooked and often involve less institutional sellers, cap rates tend to be higher. IOS assets typically trade at 50–150 bps above standard industrial cap rates, translating to higher going-in yields. For example, if Class A warehouse cap rates are ~4.5–5%, comparable IOS yards might trade in the mid-5% to low-6% range. These yield spreads provide investors extra return premium while still benefiting from similar tenant demand drivers.

• Strong Cash Flow with Triple-Net Leases: IOS leases are frequently long-term NNN leases with annual escalations (3%+), which means tenants cover taxes, insurance, and maintenance, and rents automatically hedge inflation. This structure produces steady, bond-like income. Reported in-place cash yields (current NOI/price) are often 6–8% for stabilized IOS – attractive in today’s environment. Combined with rent bumps and low expense leakage, IOS provides reliable cash flow for income-focused investors.

• Low Capital Expenditures & Maintenance: By nature, outdoor storage lots have minimal improvements – perhaps some paving, fencing, lighting, and a small office trailer. There are no large structures to build or costly building systems (no HVAC, elevators, etc.). Thus, upfront development costs are low (a 5-acre IOS yard might cost $1–2 million total to acquire land and make it tenant-ready, versus $5–10+ million for a warehouse on the same land). Ongoing cap-ex and maintenance costs are also significantly lower than for traditional industrial buildings. This low-cost profile boosts net returns and reduces operational headaches – an IOS site is a relatively “hands-off” asset to own and manage.

• Robust Demand & Resiliency: The supply-demand imbalance in IOS provides a long runway of tenant demand. Municipal zoning restrictions, community opposition, and conversion of old yards to higher uses mean new supply is perpetually limited. Meanwhile, tenants from 3PLs to construction firms desperately need parking and laydown space in logistics-constrained markets. Even during economic lulls, IOS tends to maintain low vacancy thanks to its diversified user base and essential role (companies always need somewhere to stage trucks, containers, or equipment). In fact, IOS vacancy (~2–3%) is about half that of bulk warehouse space. This downside protection is amplified by the fact that IOS properties are ultimately valued mostly for their land – in a downturn, well-located land retains value, and owners can pivot to alternate uses if needed. This inherent land value floor and the “scarcity premium” on infill sites help IOS assets hold value even in volatile markets.

• Redevelopment and Upside Potential: Many IOS sites in dense markets represent covered land plays – they generate income now but could support higher and better uses in the future. For instance, an open yard in a growing urban submarket might be a prime candidate for eventual redevelopment into a warehouse, multifamily, or mixed-use once the market matures. Multifamily developers in some cities will pay 2–3 times more per land square foot than industrial buyers can justify. Thus, an IOS investor can “land bank” a strategic site, collecting rent in the interim, and later sell or redevelop for a substantial gain. This optionality adds long-term upside to the already solid cash yields. As one industry expert quipped, IOS can be a “beautiful ugly duckling” asset – an unglamorous lot today that delivers exceptional returns and potential future windfalls.

In sum, the IOS sector offers an attractive risk/return profile: stable income (backed often by credit-grade tenants on long leases), high yields relative to core real estate, and land-value growth potential. These traits have not gone unnoticed – new dedicated IOS investment funds and joint ventures (Alterra IOS, Zenith/J.P. Morgan, etc.) have raised hundreds of millions of dollars to acquire fragmented IOS sites and aggregate portfolios. As more institutional capital enters, cap rates could compress and data on the sector is becoming more robust. But for now, IOS still provides a unique value proposition in an investor’s portfolio: a way to capture booming logistics demand without the high cost and competition of traditional warehouses.

Key Demand Drivers for IOS Growth

Several macro trends are fueling the burgeoning demand for industrial outdoor storage and trailer yards. Understanding these drivers is crucial for forecasting the IOS sector’s trajectory into 2030:

• E‑Commerce Expansion & Last-Mile Needs: The persistent growth of e-commerce continues to strain distribution networks and bolster demand for logistics space of all types – including open-air yards. Online retail sales (with their rapid delivery expectations) have increased inventory throughput and trailer traffic across the country. Warehouses alone can’t handle the surge in goods movement, especially during peak seasons. IOS sites serve as critical overflow and last-mile staging areas near population centers. For example, infill trailer yards allow 3PLs and retailers to park delivery vans, drop trailers, or store overflow stock closer to end customers, speeding up fulfillment. The pandemic-era supply crunch underscored this need – when warehouses overflowed, companies turned to outdoor lots to hold excess containers and inventory. Even as supply chain bottlenecks eased, e-commerce volumes remain elevated, and “just-in-time” inventory models now incorporate more safety stock, keeping IOS yards in high demand as flexible buffer space. Over the next 5+ years, every extra percentage point of e-commerce penetration translates into additional trucks, containers, and chassis that need parking – a direct boon for IOS landlords.

• Port Activity and Shifting Trade Patterns: Major U.S. ports have seen record throughput in recent years, and port-adjacent land is at a premium. During the COVID-19 import surge, ports like Los Angeles/Long Beach were forced to use off-terminal yards to store thousands of idle containers. This highlighted IOS’s role as a pressure-relief valve for global trade. Port authorities and logistics firms have since been securing more nearby land for such contingencies. East Coast and Gulf Coast ports expanded capacity (following the Panama Canal widening and cargo diversions from the West Coast), driving IOS demand in the Southeast. However, trends are dynamic: West Coast ports are expected to regain market share of cargo as labor issues stabilize and shippers rebalance routings. This could refocus some container yard demand back to Southern California and Pacific Northwest. Regardless of coast, overall cargo volumes are projected to grow into the late 2020s, keeping IOS yards around ports as mission-critical infrastructure. In short, ports need nearby laydown yards to smooth out the flow of goods – and as U.S. port activity remains strong (despite periodic dips or routing shifts), the IOS sites supporting them will remain in high demand.

• Truck Parking Shortages & Logistics Regulations: The U.S. faces a well-documented truck parking crisis, which directly elevates the importance of IOS yards and trailer parking facilities. Nationwide, there is only about 1 parking space per 11 long-haul trucks on the road, forcing many drivers to search for ad-hoc spots or idle on shoulders. Coastal regions and freight-heavy corridors are especially undersupplied – the Western U.S., for instance, has an extreme deficit of over 2,100 trucks per available parking spot. This shortage is not only a safety issue but also an opportunity for IOS operators: well-located truck yards command a premium as safe havens for drivers. Additionally, hours-of-service (HOS) regulations and the 2019 mandate for electronic logging devices (ELDs) have made it more critical for drivers to find authorized rest locations on schedule. IOS yards positioned near highways and metro areas can serve as staging areas where truckers stop overnight or idle while awaiting warehouse appointment times. Stricter emissions rules are another factor – for example, drayage trucks in California face idling restrictions, increasing demand for off-port parking lots to hold trucks and chassis when not in use. In sum, the confluence of trucking industry constraints is driving companies to secure more yard space. Modern yard management strategies are evolving as well: large fleets and 3PLs utilize software-driven Yard Management Systems (YMS) to optimize the flow of trailers through facilities. Looking ahead, we may even see autonomous trucks and drones in yard operations (for security and inventory monitoring), further increasing the efficiency and utilization of IOS sites.

• Onshoring, Infrastructure, and Construction Booms: Broader economic shifts such as nearshoring of manufacturing to North America and the infrastructure construction boom are creating new sources of IOS demand. With more companies moving production or suppliers to the U.S. and Mexico, border cities like Laredo, TX and Calexico, CA have witnessed a spike in need for container yards, trailer drop lots, and equipment storage to support cross-border supply chains. The U.S. government’s recent $1.2 trillion Infrastructure Investment and Jobs Act is funding upgrades to highways, bridges, rail, and utilities. These large projects require huge amounts of materials and machinery – which are often staged in nearby IOS yards for the multi-year construction duration. Indeed, construction and equipment rental firms are major IOS tenants, relying on outdoor yards to store heavy equipment, pipes, steel, and building materials between job sites. Markets with energy and utility projects (like wind farms or data center construction) also see short-term laydown yard requirements. In essence, whenever there is a surge in industrial activity – whether it’s building a highway, a new power plant, or a logistics facility – there is a parallel surge in demand for outdoor industrial storage space to support that activity. This cyclical but recurring demand source provides an additional growth vector for the IOS sector through 2030.

Development Costs, Land Pricing, and Compliance Considerations

One reason IOS is appealing to developers and investors is the relatively low cost of development compared to traditional industrial real estate. At its core, an IOS project involves land plus light improvements. Key cost components include land acquisition, site preparation (clearing, grading), installing a durable surface (gravel or asphalt paving), fencing and gating the perimeter, basic lighting and security, and possibly a small office or utility hookups. There is no expensive vertical construction aside from maybe a prefabricated shed or maintenance garage. This means total project costs are a fraction of building a warehouse of similar acreage. For example, as noted, a 5-acre outdoor storage yard might entail a $1–2 million initial investment all-in, whereas a 100,000+ sq ft warehouse on 5 acres could cost $5–10 million+ to build (plus higher ongoing expenses). The simplified development process also shortens timelines – an IOS site can be made tenant-ready in months (just paving and fencing) rather than the year or more it takes to construct a warehouse, allowing faster lease-up and revenue generation.

That said, land costs themselves can be a significant barrier, especially in infill areas. IOS can often make use of parcels that might be less desirable for other uses (odd-shaped lots, older industrial plots, outskirts of town). Such land can be acquired more affordably, helping keep the basis low. In secondary or interior markets, industrial land might trade in the hundreds of thousands of dollars per acre – for instance, in 2024, Fort Worth, TX IOS sites sold for $400k–$700k per acre in our example above. But in coastal port cities or dense metros, land values are substantially higher: multi-million-dollar per acre pricing is common for usable industrial-zoned land in Southern California, New Jersey, South Florida, and other high-demand regions. As IOS becomes institutionalized, competition for well-located parcels has intensified, putting upward pressure on land prices. This is especially true since IOS use competes with other potential higher uses – an empty urban lot might fetch far more if sold for redevelopment (e.g. apartments) than for a long-term trailer yard. Investors must therefore carefully underwrite land value trends and exit strategies (holding as IOS vs. redeveloping) when acquiring sites.

Zoning and compliance are another crucial aspect. Municipal zoning codes often strictly limit outdoor storage uses – many cities zone such uses only in certain heavy industrial areas, or impose special permits. Entitlements can be challenging: local communities frequently oppose new truck yards due to concerns about noise, traffic, and low tax revenue generation. Securing approvals for a new IOS facility might involve environmental impact studies, traffic mitigation, landscaping buffers, and time-consuming public hearings. Additionally, sites must meet environmental regulations: any prior contamination (from old industrial activities) needs remediation, and stormwater drainage plans are typically required to prevent runoff pollution. Developers should budget for features like detention ponds or oil-water separators on paved yards to comply with water quality rules. Another compliance factor is truck parking design standards – many jurisdictions have specific requirements for surfacing (e.g. dust-free pavement to avoid air pollution), lighting, and even electric infrastructure (to reduce diesel generator use). In California, for example, stringent stormwater and air quality regulations add costs to maintaining an outdoor storage site.

Despite these hurdles, the regulatory barriers ironically create a moat for existing IOS assets: it’s hard to get new yards approved, which limits future competition. Owners of grandfathered sites in prime locations thus hold valuable entitlements. That said, going forward we see regulatory trends pushing IOS toward higher standards – e.g. requiring more landscaping to improve aesthetics (mitigating community objections about eyesores), mandating electric hookups for refrigerated trailers or future electric truck charging, and incorporating sustainability measures.

Environmental and Sustainability Impacts

By their nature, large outdoor storage yards have significant environmental footprints – but they also offer opportunities for sustainable adaptation. On the downside, a typical IOS facility is a sprawling impervious surface that can contribute to stormwater runoff and heat island effects if not properly managed. Pollutants (oil leaks, fuel, rust from machinery) can accumulate on the ground and be washed into local waterways during rain, impacting water quality and ecosystems. Furthermore, clearing land for yards may involve paving over greenfield areas, potentially harming habitats and biodiversity if mitigation steps aren’t taken. There are also community aesthetics and noise concerns – an open lot full of trucks or equipment can be considered an eyesore or source of dust and noise, attracting community resistance (the “Not In My Backyard” syndrome). These factors mean IOS operators must be diligent about environmental compliance and community relations. Best practices include regular sweeping and maintenance to prevent chemical runoff, spill containment plans, dust control for unpaved areas, and visual screening (walls or landscaping) to buffer neighboring properties.

On the other hand, IOS facilities can be made more sustainable with modern approaches. For one, the absence of large buildings means far lower energy usage and carbon footprint in operations – there’s no heating/cooling of warehouses or extensive lighting of indoor space. Some IOS sites are integrating solar panels, LED lighting, and water recycling systems to further green their profile. For example, yard light poles can be outfitted with solar panels, powering high-efficiency LEDs that only activate via motion sensors at night. Large paved areas can implement permeable pavement in sections, or drainage swales and rainwater harvesting basins, to mitigate stormwater runoff and even reuse rainwater on-site. Incorporating green landscaping around the perimeter and unused corners of a site can help with stormwater absorption, provide shade, and improve visual appeal. Native vegetation buffers not only screen the facility but also support local flora and fauna, partially offsetting the ecological impact. Some forward-thinking designs treat IOS lots as interim land uses and maintain portions as open green space that can be later developed – this helps balance impervious surface coverage.

Sustainability is also a business opportunity: many corporate tenants have their own ESG goals and prefer yard facilities that align with greener operations. For instance, as electric trucks become viable for short-haul routes, an IOS yard with EV charging infrastructure and solar power generation will be highly sought after. (Notably, a challenge is that many existing IOS sites lack the electrical capacity for fleet charging – upgrades to grid power and smart charging systems are expected to be a key improvement in coming years.) By investing in such features, IOS owners can future-proof their assets and appeal to environmentally conscious users. In summary, while IOS expansion does have environmental impacts – chiefly land use conversion and runoff pollution – these impacts can be mitigated through design and management. And in some respects, IOS lots provide environmental benefits relative to more intensive industrial uses: they consume fewer resources to develop and operate, and can reduce transportation emissions by positioning logistics activities closer to where they are needed (shortening truck routes for last-mile delivery, for example). The trend into 2025–2030 is for IOS to become more sustainable, driven by both regulation and industry best practices, with features like green infrastructure, renewable energy, and smarter land utilization becoming standard.

Outlook 2025–2030: Forecast and Opportunities

The mid-term outlook for the IOS sector (2025 through 2030) appears broadly positive, with sustained demand growth anticipated, albeit with some evolution as the market matures. Tenant demand for IOS is expected to remain robust. E-commerce is forecasted to keep growing its share of retail (even if at a moderate pace), which will continue to generate new requirements for trailer parking, transload yards, and last-mile vehicle depots in proximity to consumers. Global supply chains are also recalibrating – the nearshoring trend suggests more inventory and production moving through U.S. logistics networks (for example, increased volumes from Mexican manufacturing), translating to ongoing need for IOS spaces at border ports and inland distribution nodes. Even as certain acute pandemic-era pressures have eased, companies have learned the importance of supply chain flexibility, and leasing extra yard space is a relatively low-cost strategy to build flexibility (versus, say, building new warehouses). All indications point to IOS demand outpacing supply in most regions for the foreseeable future.

On the supply side, we anticipate gradual development of new IOS capacity – but not enough to disturb the supply/demand balance. High barriers to entry (zoning, community opposition, land scarcity) will persist, meaning few entirely new large-yard projects will come online in core markets. Instead, any new supply will likely come via adaptive reuse (e.g. converting an old industrial plot or defunct factory site into an outdoor storage yard) or through expansion in exurban areas where land is available. Some markets like Dallas are already seeing an uptick in built-for-purpose IOS projects on the metro periphery – a trend that may continue in Sunbelt regions where land costs are still reasonable. These new deliveries could cause very slight increases in vacancy locally (as was seen in South Dallas in Q1 2024), but given pent-up demand, any slack is likely to be short-lived. In coastal gateway markets, the scarcity will only intensify. We expect occupancy to remain effectively full (vacancy in the low single digits) and rent growth to somewhat normalize to inflation-plus levels. Having seen dramatic rent spikes of 20%+ in recent years, future annual rent growth may moderate to the ~3–5% range – still healthy and often contractually embedded via escalators. There is upside for additional rent surges in certain high-growth corridors (for instance, if a major port or infrastructure project suddenly requires a lot of staging space, landlords could push rents aggressively in that submarket).

Investment activity in IOS is poised to accelerate further. As institutional investors gain comfort with the asset class, more capital will target IOS acquisitions and development. This competition will likely lead to some cap rate compression over the next five years – effectively bidding up IOS prices relative to income. In 2022–2023, cap rates rose slightly due to higher interest rates (yield requirements), but looking toward 2025 and beyond, if interest rates stabilize or decrease, IOS cap rates could compress back toward the low-5% range for quality assets (especially infill portfolios). In top-tier markets, we wouldn’t be surprised to see cap rates in the 4s% again for large, long-leased IOS properties, as was the case in early 2022. Secondary market IOS will still trade higher, but even there the spread over traditional industrial could shrink as more buyers enter the fray. The implication for investors is that the window to acquire IOS at a yield premium may narrow in coming years. However, even at somewhat richer valuations, IOS will likely remain attractive because of its stable fundamentals. Many investors are underwriting total returns (IRRs) in the mid-teens on IOS deals, achieved through a combination of 6–8% cash yields and value-add lease-up or redevelopment plays. These return levels (often 12–15% over a hold period) should persist if investors can find off-market or redevelopment opportunities – though they may taper down if asset prices keep climbing. Notably, several IOS-focused funds launched recently are targeting net IRRs around 14–16% to their investors, signaling confidence that double-digit returns are achievable through the end of the decade.

One emerging dynamic by 2030 could be consolidation and scaling in the sector. Right now, IOS is still somewhat fragmented – many sites owned by small operators. But with big platforms (Alterra, Zenith, etc.) assembling hundreds of millions in assets, we may see the beginnings of an aggregated IOS REIT or large portfolio sales that set more standardized pricing. Greater data availability and transaction volume will help appraisers and lenders get more comfortable, further institutionalizing IOS finance (already, more regional banks and even CMBS lenders are creating loan products for IOS, improving capital access). If an IOS REIT or two emerges, that would provide public market validation of the asset class and possibly compress cap rates even further due to increased liquidity. On the development front, design standards for new IOS will likely evolve – expect more sites to be delivered with full paving, lighting, stormwater systems, and even smart tech integration (sensors, camera systems, software to manage gate check-in/out). This responds to both tenant expectations and municipal requirements for cleaner, safer industrial yards. The IOS of 2030 could be a more high-tech affair: some yards may incorporate electric charging depots for truck fleets, autonomous yard trucks, or drone surveillance for security. These enhancements could open new revenue streams (e.g. charging-as-a-service) and differentiate top-tier “Grade A” IOS facilities from older yards.

From a risk perspective, investors should monitor a few areas going forward. One is regulatory changes – for instance, if a city decides to re-zone and eliminate grandfathered outdoor storage, or impose hefty stormwater fees, it could impact operations. Another is the potential for economic downturn: while IOS proved resilient through recent cycles, a severe freight recession (with prolonged declines in cargo volume and trucking activity) might soften demand temporarily in some segments (e.g. fewer containers to store if imports drop). Additionally, if autonomous trucking drastically reduces the need for overnight parking (say trucks can run 24/7 with no driver), that could reduce long-haul parking demand far in the future – though realistically, that is beyond the 5-year horizon and would likely be offset by new uses (autonomous vehicle depots, etc., which still require land). Overall, these risks seem moderate against the strong secular trends favoring IOS.

Investor Takeaways for 2025–2030

For investors and developers evaluating IOS opportunities, the next five years should offer plenty of upside. Rent growth is expected to continue outpacing inflation given tight vacancy (forecast: IOS rents rising perhaps ~4% annually on average). Cap rates may compress slightly but should remain higher than for comparable warehouses, meaning IOS will still yield a spread. High-quality IOS assets in infill locations could see significant appreciation as institutional demand grows and redevelopment potential gets capitalized into pricing. Conversely, investors who can source off-market “mom-and-pop” owned yards today might capture outsized gains by aggregating and professionalizing those assets. Return metrics in the sector are likely to stay attractive: we expect stabilized unlevered yields in the 5–6% range and leveraged IRRs in the low teens, assuming stable economic conditions. In value-add strategies (e.g. taking an underutilized site, repaving, raising rents to market), IRRs could hit mid-teens.

In summary, Industrial Outdoor Storage has shifted into the mainstream of industrial real estate, and its momentum is poised to continue through 2030. The sector’s strategic value – providing critical logistics infrastructure with low capital requirements – aligns well with the needs of a modern, flexible supply chain. Investors, logistics professionals, and developers who understand IOS’s unique dynamics can capitalize on durable demand drivers (from e-commerce to infrastructure projects) and the persistent scarcity of industrial land. While challenges around zoning, environment, and fragmentation exist, they are being gradually overcome as the industry coalesces around best practices and institutional capital. The coming years will likely see IOS further entrenched as a core asset class – one that offers both reliable income and an inflation-hedged stake in underlying industrial land. For those looking for stability with upside in the logistics real estate universe, the “truck yards and trailer lots” of the IOS sector may well present lots of opportunity ahead.

Sources

• Capright, Industrial Outdoor Storage (IOS) – 3rd Quarter 2024 Update. (Market trends and asset class overview).

• Rectangle Group, Industrial Outdoor Storage: Delivering Income, Stability, and Long-Term Value (2025). (Investment perspective on IOS yields, vacancy, and strategy).

• Aykor, Ali Mert. International Supply Chain Management (PhD Dissertation, 2025). (Discussion of yard management and future logistics tech).

• Matthews Real Estate, Industrial Outdoor Storage Market Update Q1 2024. (Supply, rents, and demand trends in key markets).

• Newmark Research, “Lots to Gain: Industrial Outdoor Storage Outperforming Bulk Warehouse” (Sep 2025). (Highlights on IOS rent growth, acreage, and vacancy).

• Northmarq, A Comprehensive Guide to Industrial Outdoor Storage (Aug 2025). (Overview of IOS definition, benefits, challenges, financing, and future).

• Kimley-Horn, Key Trends Shaping Industrial Outdoor Storage in the Post-COVID Era. (Industry insights on e-commerce, ports, trucking regs, and environmental benefits).

• IOS List, “Minimizing Environmental Impact in Industrial Outdoor Storage” (Oct 2023). (Best practices for sustainable yard operations).

• Wealth Management Real Estate (WMRE), “Industrial Outdoor Storage Rises in Popularity Among Institutional Investors” (Jul 2023, by Buck Wargo). (Market size estimates, investor quotes, cap rates, and fund activity).

• GlobeSt, “Industrial Outdoor Storage Gains Traction as a Core Asset Class” (Sep 2025, research article). (Recent rent statistics and institutional trends).