Industrial Outdoor Storage Update – September 2026

September 16, 2026

Industrial Outdoor Storage Is Scaling Up. The Data, and Valuation Challenges, Are Growing With It.

Industrial Outdoor Storage (IOS) continues to attract institutional capital, transforming a historically fragmented corner of the CRE market into an increasingly sophisticated investment sector.

Capright’s newly released Industrial Outdoor Storage Market Update examines the forces behind that evolution, including growing institutional ownership, major capital events, acquisition activity, financing trends and changing lease structures.

But the report also highlights an important reality: more transaction data does not necessarily make IOS easier to value.

Institutional Capital Continues to Move Into IOS

Unlike traditional warehouse assets, a significant portion of IOS inventory remains controlled by owner-users, local investors and smaller private operators. That fragmentation has created an opportunity for well-capitalized investors to acquire individual properties and assemble diversified portfolios at scale. 

Recent transactions demonstrate just how quickly institutional participation is expanding.

Brookfield completed a $1.2B take-private of Peakstone Realty Trust, while other notable capital events include a $900M Stockbridge portfolio transaction, a $672M refinancing involving Realterm and Starwood, and a $400M Alterra IOS refinancing. New investment vehicles and strategic partnerships are bringing additional institutional capital into the sector as well. 

At the same time, the number of IOS properties represented within NCREIF’s Expanded National Property Index has more than doubled over the preceding five years, another indication of the sector’s increasing institutionalization. 

Financing and Lease Structures Are Evolving

Institutional growth is changing more than ownership.

Historically, IOS financing was concentrated among local and regional banks. Today, debt funds and larger national lenders are increasingly participating in the sector. The report notes typical leverage of approximately 55% to 65% of value, debt yields of 9% to 11%, and reported financing spreads for stabilized core assets as low as 165 basis points over SOFR. 

Lease structures are evolving, too. Average IOS lease terms have increased from approximately two to three years in 2023 to four to six years in 2026, while weighted-average lease terms within institutional portfolios have risen from approximately 2.5 years in 2022 to more than 4.5 years. 

Longer leases, broader lender participation and greater transaction activity can all contribute to more reliable cash-flow projections and better market intelligence.

More Data Does Not Eliminate the Valuation Challenge 

Despite greater institutional participation, IOS remains an inherently heterogeneous asset class.

Two properties with similarly sized buildings can have substantially different values because of differences in usable acreage, building coverage, paving, zoning, access, configuration, location and permitted outdoor storage. Likewise, relying solely on price per acre can produce misleading comparisons when improvements, tenancy and allowable uses differ. 

That distinction becomes increasingly important as portfolios grow and transaction volume increases.

Traditional industrial metrics such as price per square foot, rent per square foot and capitalization rate don’t always tell the full story for IOS because much of an asset’s economic utility may reside in the land itself.

The result is a market where more data creates opportunity, but properly normalizing and interpreting that data becomes even more important.

Creating Greater Transparency in Industrial Outdoor Storage

As IOS moves from fragmented ownership toward institutional scale, consistent valuation methodologies can provide a common framework for comparing assets that otherwise may be difficult to benchmark.

For institutional owners, that consistency can support portfolio reporting, acquisition and disposition decisions, financing analysis and measurement of asset performance over time. 

Capright’s Industrial Outdoor Storage Market Update explores these trends and provides a closer look at the transactions, owners, acquisition activity, financing conditions and valuation considerations shaping the IOS market today.

📬 Let’s Talk

At Capright, we are uniquely positioned to support institutional investors, operators, and developers navigating this evolving environment. As an independent valuation and advisory firm, we provide clarity, accuracy, and confidence, especially where the stakes are highest.

If you’d like to discuss the findings or need support with your commercial real estate valuation or strategy, reach out to: