Industrial Outdoor Storage
IOS financing
Bridge loans for industrial outdoor storage: truck yards, container depots, equipment storage, and open-air industrial sites. Acquisition and improvement capital for the fastest-growing niche in commercial real estate.
Why Requity for IOS
Built for an asset class banks cannot underwrite
Industrial outdoor storage is the fastest-growing niche in commercial real estate, but traditional lenders have not caught up. Their models need buildings as collateral. IOS value is in the land, the zoning, and the logistics location. We underwrite accordingly.
We Underwrite Land Value, Not Just Buildings
Traditional lenders focus on building improvements. IOS value is in the land, the zoning, and the location relative to logistics infrastructure. Our underwriting model evaluates the full income potential of the site, not just the structures on it.
First-Mover Lending in IOS
Regional banks handle ~90% of IOS financing because most national bridge lenders have not built underwriting models for the asset class. Requity fills that gap with bridge capital specifically structured for outdoor industrial properties.
Speed in a Scarcity Market
Properly zoned industrial land near logistics corridors is disappearing. Municipalities are restricting new IOS zoning. When a site becomes available, the operator who can close in 10 days with no financing contingency wins.
Use Cases
What we finance
From stabilized truck yard acquisitions to raw land conversion for container storage and equipment depots.
Truck Yard & Terminal Acquisitions
Acquire truck yards, trailer parking facilities, and freight terminals. These properties generate strong cash flow from trucking companies, logistics operators, and last-mile delivery services that need secure outdoor parking and staging areas.
Container & Equipment Storage
Finance container storage yards, heavy equipment depots, and material staging areas. Intermodal facilities near ports, rail, and highway interchange locations command premium lease rates driven by supply chain demand.
Land Acquisition & Entitlement
Acquire raw or underutilized land with industrial zoning suitable for IOS conversion. Properties near ports, intermodal facilities, and major logistics corridors with proper zoning are increasingly scarce. Bridge capital lets you secure the land while you execute site improvements.
Site Improvements
Fund grading, paving, fencing, security systems, lighting, drainage, and utility connections that transform raw land into a functional IOS facility. Improvement holdbacks release funds as each phase of site work is completed and inspected.
Value-Add Repositioning
Acquire underperforming IOS properties with below-market rents, poor site conditions, or underutilized acreage. Improve the facility, implement professional management, adjust rates to market, and refinance at a significantly higher valuation.
Zoning & Use Conversion
Finance properties being converted from other industrial uses to outdoor storage. Former manufacturing sites, scrap yards, and underutilized industrial parcels can be repositioned as IOS facilities to capture the growing demand for outdoor industrial space.
Deal Economics
How the numbers work
A representative IOS acquisition: secure a zoned industrial site, improve it for truck and container storage, lease to logistics operators, and refinance at stabilized value.
Acquisition
Bridge Loan
Stabilized (14 Months)
Representative example for illustrative purposes only. Actual deal economics vary based on market conditions, execution, and property specifics.
FAQ
IOS lending FAQ
Industrial outdoor storage refers to open-air industrial properties used for parking, storage, and staging of trucks, trailers, containers, heavy equipment, construction materials, and other industrial goods. Common IOS property types include truck yards, trailer parking facilities, container depots, equipment storage yards, and material staging areas. The value is primarily in the land, zoning, and location rather than building improvements.
Yes. IOS is an active and growing lending category for Requity. We finance acquisitions of existing IOS facilities, land acquisition for IOS development, site improvements (grading, paving, fencing, utilities), and value-add repositioning of underperforming outdoor industrial properties.
Traditional lenders focus on building improvements as collateral. IOS properties have minimal structures, with the value concentrated in the land, zoning entitlements, and location relative to logistics infrastructure. Most banks lack underwriting models for this asset class. Regional banks handle approximately 90% of IOS financing as a result. Bridge lenders like Requity fill the gap for acquisitions that need speed or fall outside traditional guidelines.
We evaluate IOS properties based on: zoning and entitlements (current and highest-and-best use), location relative to ports, intermodal facilities, and highway interchanges, comparable lease rates for outdoor industrial space in the market, existing lease income and tenant quality, site condition and improvement needs, and the borrower's operating plan and exit strategy.
Yes. We structure improvement holdbacks for grading, paving, fencing, security systems, lighting, drainage, and utility connections. Funds release on a draw basis as each phase of site work is completed and inspected.
Common exits include refinancing into conventional bank financing once the property has stabilized income and documented tenant history, sale of the improved facility at a compressed cap rate, or long-term hold with permanent financing from a regional bank familiar with the asset class.
IOS cap rates vary widely based on location, zoning, and improvements. Properties near major logistics hubs in tier-1 markets trade at 5-7% cap rates. Secondary market IOS with strong fundamentals trades at 7-9%. Unimproved or transitional sites can be acquired at higher yields with significant upside potential through site improvements and professional management.
We can close IOS acquisitions in as few as 10 business days from signed term sheet. Term sheets are delivered within 48 hours of receiving a complete deal package including site details, zoning confirmation, and operating plan.