In the world of real estate investments, industrial outdoor storage (IOS) properties are the hidden gems that savvy investors are increasingly turning to. The IOS market is currently estimated at over $200 billion and the advantages of owning such real estate are impossible to ignore. As more industries depend on outdoor storage for their operations, the market continues to expand, making it a promising arena for real estate investors.
Key Players in the IOS Space
To appreciate the significance of IOS real estate, it’s essential to recognize some of the major players in the space. Companies like Realterm, Industrial Outdoor Ventures, Alterra, Triten, and others are making their mark in this arena and have demonstrated the institutionalization of the IOS sector.
Low Maintenance, High Returns
One of the significant advantages of owning IOS real estate is the minimal maintenance required. Typically, IOS properties are leased out on a long-term basis, often spanning 5 to 10 years or more. These leases are structured as triple net leases, which means that the tenant covers property taxes, insurance, and maintenance costs. This arrangement shifts the responsibility for upkeep onto the tenant, reducing the landlord’s operational burden.
Diminishing Supply and Limited Zoning
The supply of land zoned for heavy industrial use is diminishing. Municipalities are not creating more of this precious land. This scarcity drives up the value of existing IOS properties, making them a hot commodity in the real estate market. The limited availability of suitable land ensures that the value of your IOS investment is likely to appreciate over time.
High Demand from National Credit Tenants
IOS real estate is in high demand among strong national credit tenants. These tenants seek reliable and well-located outdoor storage facilities to support their operations. Their financial stability and long-term lease agreements provide investors with a predictable income stream and reduced leasing risk.
Conclusion
In summary, owning industrial outdoor storage (IOS) real estate offers a multitude of advantages that make it a compelling investment option. The IOS market’s immense size, key players, low maintenance, diminishing supply, and the incredible demand all contribute to the allure of this sector. As the industrial and logistics landscape continues to evolve, IOS real estate emerges as a smart choice for investors. It’s a golden opportunity to diversify your real estate portfolio and enjoy the potential for long-term profitability.