- IOS pricing expectations remain misaligned between buyers and sellers across key US markets.
- Owners are increasingly choosing to lease rather than sell, citing strong cash flows and rising rents.
- True infill IOS sites are scarce, driving investor interest beyond core metros into secondary and tertiary locations.
- Off-market trades dominate as new supply is limited and leasing fundamentals remain robust.
Sellers Hold Ground Amid Active Capital
According to Globe St, buyers and sellers in the industrial outdoor storage (IOS) sector remain far apart on pricing expectations. Colliers’ latest research shows that, despite strong investor interest, owners resist selling at today’s valuations. They believe prices do not reflect long-term asset value. As a result, many prefer leasing over selling, shifting focus to income generation.
Leasing Fundamentals Support Hold Strategy
Owners increasingly hold IOS assets as tenant demand diversifies beyond traditional users. New users include utilities, waste management firms, and last-mile delivery operators. Rents continue to rise, and leases now include fixed escalations, boosting long-term income potential. Limited infill IOS supply and growing land values make leasing more attractive. Recent investments from major institutional players also reinforce long-term confidence in the sector. This hold strategy allows owners to benefit from steady cash flow while waiting for pricing to align with expectations.
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Scarcity Drives New Market Focus
True infill IOS inventory is shrinking due to tight zoning and competition from higher-density uses. As a result, investors are expanding into exurban and tertiary markets, seeking more available land and attainable entry points. Most quality IOS deals now trade off-market, often before public marketing, further limiting visible transaction volume and reinforcing the sector’s selective deal environment.
Outlook: Leasing Resilience Continues
Colliers forecasts resilient IOS leasing conditions into 2026, fueled by strong user demand and constrained core market supply. However, sales activity is set to remain selective, shaped by asset specifics, timing, and disciplined deal strategies as the IOS pricing gap persists nationwide.
