IOS (Industrial Outdoor Storage) properties, also known as 'drop lots' and 'low-coverage industrial service facilities, are commonly used for truck and trailer parking and storage, construction or heavy equipment yards, container and pallet storage, tow company yards, and businesses like landscaping and equipment rental. Many properties are fenced and equipped with lighting and security cameras to prevent theft or vandalism. Despite growing investor interest, most properties remain owned by users or local and regional private investors.

STRONG DEMAND, LIMITED SUPPLY

The demand for Industrial Outdoor Storage (IOS), an asset class valued at over $150 billion, surged with the acceleration of e-commerce at the start of the pandemic. IOS has become an essential part of the supply chain for retailers and logistics operators. The primary driver is the dwindling supply of land available for IOS, as it's often redeveloped for "higher and better uses," especially in or near major metropolitan areas. With limited supply and strong demand, the availability of existing IOS properties is under 3% nationally, significantly lower than the overall industrial sector. Since the end of 2019, IOS rents have increased by nearly 30% on average.

Interstate 11

"The Nevada Department of Transportation (NDOT) says the footprint of Interstate 11, already going through Las Vegas, the country's newest interstate, will stretch from the U.S.-Mexico border all the way to Canada."

"When fully completed, Interstate 11 will further increase the already high demand for industrial outdoor storage."