- Industrial outdoor storage (IOS) rents averaged $13.14 PSF in Q4 2025, a 17.9% premium over traditional industrial rents.
- IOS assets posted a low 2.5% average vacancy rate, compared to 6.7% for traditional industrial properties.
- Tight zoning and limited land supply restrict IOS development, fueling competition and tenant retention.
- Secondary metros near logistics hubs lead IOS rent premiums, with emerging markets identified in Kansas City, Los Angeles, and Savannah.
IOS Demand Accelerates
The Commercial Property Executive reports that industrial outdoor storage assets have emerged as top performers in the industrial real estate sector, according to CBRE’s Q4 2025 report. IOS properties, which include parcels with minimal building coverage and primarily single-tenant, net-leased assets, are seeing heightened demand due to cost efficiency and logistical advantages.
Rent Growth and Market Constrains
IOS rents surged to $13.14 PSF in the last quarter of 2025, far outpacing the $10.85 PSF for traditional industrial assets. The national rent premium rose 17.9% year-over-year, continuing a broader trend of pricing divergence across industrial formats nationwide. At the same time, vacancy rates for IOS held at 2.5%, while traditional industrial posted 6.7%. These figures reflect both strong demand and the challenges of bringing new IOS product to market, driven by restrictive zoning and local opposition.
Logistics and User Benefits
IOS facilities support a range of industries including construction, utilities, trucking, and equipment sectors—offering proximity to job sites and major transport corridors. With limited infrastructure required, net lease structures are common, shifting maintenance and other property costs to tenants.
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Key Markets and Outlook
Highest IOS rent growth is occurring in secondary logistics markets like Kansas City, Indianapolis, Charlotte, and Cincinnati. Emerging markets include Los Angeles, Savannah, Columbus, and El Paso. CBRE notes that with little alternative to IOS aside from underutilized warehouse yards, demand for these assets is likely to remain high as manufacturing and infrastructure activity continues nationwide.
