Electrification of IOS (EIOS)

Industrial outdoor storage has already become one of the more closely watched niche sectors in commercial real estate. But as electric vehicles, autonomous fleets, and electrified trucking continue to grow, some IOS properties may be positioned for a new layer of demand.

IOS Remains A Fragmented Market
Catalyst was initially drawn to IOS while searching for industrial investments with more yield and stronger return potential than conventional warehouse assets. What the firm found was a large, fragmented market made up of many small properties, often owned by local operators, family businesses, or owner-users.

That fragmentation has created an opportunity for institutional platforms that can source, diligence, acquire, and operate small assets at scale.

The challenge is execution. IOS assets are often granular, local, and operationally nuanced. Catalyst described its early growth as highly hands-on, with the team driving market by market, meeting with truckers, contractors, landscapers, waste management companies, and other users that rely on outdoor storage sites.

What Makes a Good IOS Site
Catalyst focuses on heavy industrial-zoned properties in densely populated urban areas where supply is fixed or declining. The ideal asset is usually a 2-5 acre site with flexible zoning, a small building, and meaningful excess yard area.

That yard may be paved or graveled and is typically used for truck parking, equipment storage, materials storage, maintenance, dispatch, or other operational needs. The building is often used for office space, maintenance, repair, or administrative functions.

The key is flexibility. Catalyst wants sites that can serve a wide range of tenants, including trucking companies, equipment rental groups, building materials suppliers, contractors, infrastructure companies, waste management operators, and other essential service businesses.

Why Outdoor Storage Works
One of the core value propositions of IOS is cost. Many tenants do not need to store equipment, trucks, or materials indoors, and traditional warehouse space can be several times more expensive than outdoor yard space.

For tenants with bulldozers, trailers, construction materials, fleet vehicles, or service trucks, a functional yard in the right location is often more valuable than a larger warehouse building. But the ability to use land this way depends heavily on zoning, which is one of the main barriers to creating new IOS supply.

What Is Electrified IOS?
Catalyst defines electrified IOS, or E-IOS, as traditional IOS with the ability to support electrified uses. The property still needs to work as a normal IOS asset first, but if it has the ability to bring in additional power, it may also serve electric vehicle, electric truck, or autonomous vehicle fleet users.

That distinction is important. Catalyst is not focused on buying sites that are purpose-built only for one electrified use case.

Electrified IOS users may need charging, maintenance, dispatch, fleet storage, or power infrastructure. These uses can include passenger EV fleets, electric trucks, and autonomous vehicle or robotaxi fleets.

Why It Matters for IOS
The electrification of IOS is not about replacing the traditional tenant base. It is about adding new demand categories to an already constrained property type.

Truckers, contractors, equipment rental companies, infrastructure groups, and service businesses still drive the core IOS market. But EV fleets, electric trucks, and autonomous vehicles may create additional demand for the same infill yards, especially in dense markets with limited supply and flexible zoning.

That is what makes electrified IOS interesting. The best properties do not need to bet on one future use case. They simply need to be well-located, functional, properly zoned, and flexible enough to serve whatever demand comes next.

Listen to the full podcast here.

Start with our guide: What is Industrial Outdoor Storage?

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