Industrial Outdoor Storage Can Be A Siren Song, And The Inexperienced Should Beware.
BISNOW, Patrick Sisson (March 20,2023)
Investors today are finding it difficult to resist the siren song of industrial outdoor storage, that alluring array of fenced-in parking lots for trucks.
IOS has rapidly become one of commercial real estate’s hottest asset classes as a flood of new money has sent prices sky-high.
“You create a buzzword, make it sound sexy and interesting, and everybody wants to have it,” Blau & Berg Senior Executive Director Michael F. Schipper said.
But investors looking to enter the space may crash on the rocks of an industry that is trickier — and less like the rest of the industrial market — than first meets the eye, and the talent pool of people with expertise in navigating the hazards is limited.