IOS Uncovered: The Evolving Outdoor Storage Sector

The global Industrial Outdoor Storage (IOS) market is transitioning into an institutional-grade real asset class, driven by structural demand, constrained outdoor storage supply, and rising private equity participation. Since 2020, the sector has recorded ~39 global transactions, with 2024 emerging as a peak year. Investor conviction has strengthened, reflected in larger average deal sizes and valuation expansion across mature IOS platforms. IOS assets continue to offer an attractive return profile, supported by cap rate premiums of 100–250 bps over traditional industrial real estate, contractual rent escalators of 3–4%, and strong rent growth of ~120% since 2020. These dynamics, combined with low capital intensity and a diversified, essential tenant base, position IOS as a compelling long-term investment opportunity for private equity investors.