Arabic version: وول ستريت تستهدف ساحات التخزين الصناعي المفتوحة
According to Cnbc, Brookfield and Blackstone are expanding their focus on industrial outdoor storage, or IOS, as rents rise and demand grows for sites that hold equipment such as bulldozers and trucks. Investors see the fragmented ownership of these yards across the United States as an opportunity to assemble assets and improve operations.
Brookfield spent $1.2 billion earlier this year to take Peakstone Realty Trust private in a deal completed in May, gaining a portfolio of more than 70 industrial properties, most of them outdoor storage yards. Blackstone’s real estate debt arm has made six loans to outdoor-storage owners totaling more than $1.1 billion, including a $244 million loan in June to Alterra IOS for the purchase of 37 properties.
Rents for IOS roughly doubled across eight major markets between 2020 and the third quarter of this year, Newmark Research and Alterra IOS data showed. Average rent per usable acre rose 103.5% to nearly $11,000 per month, compared with a 66% increase for traditional industrial space. Baltimore, Houston and Norfolk led rent growth, while South Florida and Savannah trailed traditional industrial properties.
Real estate advisers said smaller investors may still find openings, particularly in three- to five-acre lots in primary or secondary markets. Zoning, tenant demand, vacancy and financing remain critical considerations. IOS generally requires lower capital expenditures than traditional industrial or multifamily properties and can offer higher yields, but smaller buyers can face more costly debt and higher equity requirements.
Investors also point to limited supply of properly zoned infill sites, which are often converted to warehouses, housing or other uses. In Chicagoland, IOS vacancy is below 3%, according to Newmark. Still, operators cautioned that returns depend on rents available today: a full yard can generate strong cash flow, while an empty yard earns nothing.
