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Industrial Outdoor Storage Demand Gains from Household Formation, E-Commerce
The formation of nearly 3.2 million households over the 24-month span ending in March, coinciding with an 18% jump in online retail sales, has spurred tenant and investor demand for industrial outdoor storage (IOS) space, Marcus & Millichap says in a new report. That demand occurs against the backdrop of a sector with limited supply.
“As growing e-commerce underscores the need for this historically lesser-known segment of the industrial sector, IOS properties have emerged as some of the most prominent niche commercial real estate investments in the marketplace today,” said Alan Pontius, SVP and national director of Marcus & Millichap’s Office and Industrial divisions.
He continued, “Because IOS supply is limited, a level of durability that is highly favorable for investors exists and as IOS lots serve a mission-critical support role in last-mile distribution, the asset class has now come to the attention of investors on a broad scale.”
- ◦Sale/Acquisition
- ◦Economy
