As a result of today’s competitive industrial/e-commerce market, one unique asset class is on the rise – industrial outdoor storage (“IOS”). The IOS market is distinctive in that is does not necessarily require the same type of diligence and development prerequisites as the more traditional industrial market whereby developers are spending much time and money on building and floor plan designs, permitting, financing requirements, and other traditional diligence investigations.

The IOS use allows for a much more cost effective and likely efficient deal – simple leasing, streamlined property management, and consistent revenue. However, there are a few characteristics to consider when determining if an IOS use is right for a particular property – zoning, accessibility, climate/location, environmental liability, and property footprint. The bottom line is that industrial outdoor storage is a new and upcoming sector that could provide developers and property owners with a strong and welcomed revenue stream.