The Rise of Industrial Outdoor Storage as a High-Demand Asset Class

Industrial outdoor storage (IOS) has emerged as a highly sought-after investment asset class, driven by the exponential growth of e-commerce, logistics, and last-mile delivery networks.

Industrial outdoor storage is an asset class in huge demand.

These properties—large open spaces used to store trucks, construction equipment, and shipping containers—are in limited supply, particularly in major metropolitan areas where industrial-zoned land is scarce. Investors are increasingly recognising IOS as a stable, income-generating asset due to its relatively low maintenance costs and strong tenant demand from logistics firms, construction companies, and transportation businesses.

As industrial real estate prices continue to climb, IOS has become a cost-effective alternative to traditional warehouses, offering businesses a necessary solution for fleet parking, overflow storage, and equipment staging.

Outdoor space suitable for industrial storage, items such as shipping containers, is demanding a premium.

For companies like Amazon and FedEx, IOS properties are mission-critical to their operations. The rapid acceleration of e-commerce has intensified the need for strategically located storage yards to facilitate efficient distribution and last-mile delivery. Without these spaces, logistics providers would struggle to stage delivery vehicles, store parcels awaiting transit, or manage returns efficiently.

Additionally, IOS sites located near major highways, ports, and urban centres help companies reduce transportation costs and meet the growing consumer expectation for same-day and next-day deliveries. As a result, industrial outdoor storage has shifted from being a niche industrial use to a key component of modern supply chain infrastructure.

For investors considering IOS properties, four key factors should be evaluated.

1. First, location is paramount—proximity to major logistics hubs, highways, and population centers drives demand.

2. Second, zoning and land use restrictions must be carefully reviewed, as some municipalities impose strict regulations on outdoor storage.

3. Third, tenant quality and lease structure play a crucial role in ensuring steady cash flow, with long-term contracts from creditworthy tenants being ideal.

4. Lastly, infrastructure and site conditions—such as proper drainage, security fencing, and paved surfaces—can significantly impact both usability and property value. With the right combination of these factors, IOS can offer strong returns and long-term investment stability.

At CapStack, we specialise in securing tailored financing solutions for investors looking to acquire industrial outdoor storage (IOS) and other industrial properties. Whether you're an experienced investor expanding your portfolio or a first-time buyer entering the industrial real estate market, our deep lender relationships and expertise in commercial property finance ensure you get the most competitive terms available.

We understand the unique financial structures required for IOS investments, including loan-to-value considerations, lease underwriting, and the importance of flexible financing that aligns with your business strategy. Our consultative approach means we take the time to understand your investment goals and match you with lenders who appreciate the long-term value of these mission-critical assets.

With our experience in commercial property finance, we know how to navigate complex transactions and deliver results. We’re open for business and ready to help you secure funding for industrial outdoor storage, warehouses, logistics centres, or any other industrial property. Whether you need acquisition financing, refinancing, or construction loans, we go the extra mile to ensure you have the capital needed to grow.

CapStack isn’t just a finance brokerage—we’re your strategic partner in building a profitable industrial property portfolio. Reach out today and let’s get started.