Wall Street Pours $2.3 Billion Into U.S. Storage Lots as IOS Rents Jump 103.5%
Updated
Updated · CNBC · Nov 14
Wall Street Pours $2.3 Billion Into U.S. Storage Lots as IOS Rents Jump 103.5%
1 articles · Updated · CNBC · Nov 14
Summary
Brookfield and Blackstone are expanding aggressively into industrial outdoor storage, a niche of equipment yards and truck lots that investors say is benefiting from AI-driven infrastructure demand and scarce supply.
Brookfield spent $1.2 billion to take Peakstone Realty Trust private, gaining more than 70 mostly IOS properties, while Blackstone's real estate debt arm has issued over $1.1 billion across six IOS loans.
Rents across eight major markets rose 103.5% from 2020 to the third quarter, to nearly $11,000 per usable acre a month, outpacing the 66% increase for traditional industrial space.
Baltimore, Houston and Norfolk led rent gains at 204%, 159% and 148%, with investors also favoring sites near ports, rail lines and highways where infrastructure and energy activity support demand.
Smaller buyers still control much of the fragmented market and can target sub-$3 million to $5 million deals, but zoning risk, tight vacancy and high borrowing costs remain key hurdles.