Andrew Wiesemann Discusses Why Outdoor Storage Is Becoming a Serious Industrial Play with GlobeSt
In a recent article with GlobeSt titled, “Why Outdoor Storage Is Becoming a Serious Industrial Play,” Matthews™ First Vice President & Associate Director Andrew Wiesemann discusses how the niche asset type has quickly become one of the “most attractive new industrial verticals this year”.
According to Wiesemann, the industrial outdoor storage (IOS) market offers investors that same yield profiles they once sought in warehouse and logistics facilities. As the asset type benefits from the same demand fundamentals and limited supply that originally fueled growth in the warehouse space, it has quickly become more appealing to new players looking for an attractive investment opportunity.
“Investors are seeing the asset class mature. That growth and evolution is creating more activity and opportunities for new players, who traditionally were focused on the warehouse segment,” says Wiesemann.
Increasing investor interest has helped move industrial outdoor storage from a niche property type into a mainstream industrial asset class. Wiesemann calls it a “strong asset class that will stay active for a long time.”
Investors are drawn to favorable rent structures, steady leasing demand, and the operational utility these sites provide. “Investors are looking for other alternative investment opportunities to achieve yields, and they are getting a lot smarter in understanding this space,” explains Wiesemann “The types of assets that they are buying in their second and third rounds are more elevated than they once were.”
Beyond power availability, Wiesemann notes that IOS properties are becoming more sophisticated than the traditional gravel yard. Today’s users increasingly prioritize fully paved sites, convenient interstate access, and features that support efficient day-to-day operations. These improvements can also strengthen a property’s appeal as an institutional-grade asset.
“Some smart groups are willing to come in and make these improvements or select sites with these characteristics, and it is benefiting their long-term business plan,” says Wiesemann. “It is creating a more institutional-grade asset, with higher market rent potential and better operations.”
“I think in the next five years,” says Wiesemann, “you’re going to see more larger institutional capital coming into the space, recapping a lot of groups, and really creating a core asset type.”
Click here to read the full article and gain more insights from Andrew Wiesemann on the industrial market’s most attractive, new asset type.
