Industrial Outdoor Storage: Tips for Making these Unique Sites Succeed
Originally published on March 13, 2024, by Kathryn Hamilton, CAE for NAIOP.
Primarily used for the storage of trucks, trailers, containers, large equipment and materials, industrial outdoor storage (IOS) is a unique property type that comes with its share of challenges. A panel of IOS experts took the stage at I.CON West this week in Long Beach, California, to walk attendees through the pressures of this industrial-zoned land and why it’s important to an overall logistics portfolio.
Moderated by Matthew Goelzer, AIA, LEED AP, principal with MG2, panelists included Jennifer Hall, partner, LIDD Consultants Inc.; James Hooks, senior vice president, CBRE; Michael Landsburg, chief development officer, NFI Real Estate; and Richard Weiss, senior vice president, Dalfen Industrial.
Here are takeaways from their conversation:
IOS zoning is tough. Like most real estate, growth follows demand. IOS sites want to be positioned as close to consumers as possible. Look for areas with flexible and expansive zoning, and as one speaker said, search for the “submarket with the best zoning, and even the city block with the best zoning.” If the goal is to look for non-incorporated spaces in areas not close to residents, it’s nearly impossible. Less than 15% of the Southern California submarket meets the criteria.
It’s a functional piece of the supply chain. If a manufacturer or third-party logistics company doesn’t have the yard capacity it needs to support the distribution network, it can’t grow. Container storage is a critical piece of goods movement. When working with economic developers, ask them to keep the bigger picture in mind and remember that IOS is a key part of making supply chains successful.