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What is IOS?
Industrial Outdoor Storage is a property that is used for outdoor storage purposes. An IOS property is usually paved or graveled and secured. Often, IOS sites have a building that occupies a fraction of the property size.
Who Uses IOS?
IOS Uses Include:
- Trucking Terminals
- Container Storage
- Equipment Rental Companies
- Materials
- Vehicle and Equipment Storage
- Service Businesses
- And More
Challenges of IOS
One of the largest challenges of IOS is lack of data. Because IOS is a newer niche in industrial real estate, obtaining data can be difficult.
There is not much widely available historical and current data for IOS rents, vacancy, etc. This can make it difficult in understanding IOS demand, values, lease up periods, etc.
The market is still fragmented with many IOS owners being private investors and individuals. There are not a few of major players that control the IOS space. Therefore, the market is still pretty fragmented.
Some investors have been hesitant to dive into markets where there are low barriers to entry. Charleston, SC, for example is a market on many IOS investors' radar. The port is a major demand driver, and Charleston's zoning creates barriers to new IOS coming to the market.
Is Spartanburg a Good Market to Invest in IOS?
Yes. Although the barriers to entry to develop outdoor storage is low, the value in the Spartanburg market is in the building/land combination. In Spartanburg county, the vacancy rate for industrial buildings under 10,000 sq ft is 3.4%. In today's market, there is a very high demand for small flex properties coupled with an outdoor storage component which is where IOS shines in the Upstate.
What is the average IOS Rent, Spartanburg SC
Like any other asset class, rents can vary according to location, amenities, etc. IOS typically ranges from $3000-$4000 per acre in Spartanburg County
IOS Sites Available
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