THOUGHT OF THE WEEK

Is Industrial Outdoor Storage (IOS) the Same as RV & Boat Storage?

People often lump IOS and RV & Boat Storage together, but while both involve outdoor space, they serve different markets, have different real estate needs, and operate under distinct fundamentals. That said, they share one major similarity in the investment world: both are considered “alternative” real estate assets.

1. Both Are Emerging Alternative Real Estate Investments

Institutional investors are increasingly looking beyond traditional asset classes like office, retail, and multifamily. IOS and RV & Boat Storage have attracted attention due to their high demand, fragmented ownership, and limited supply—making them ripe for consolidation and professionalization.

One of the biggest recent moves in outdoor storage: Goldman Sachs committed $500 million to back RecNation, a major player in RV & boat storage. This signals growing institutional interest in recreational storage as an investment class.

Meanwhile, industrial outdoor storage (IOS) is seeing similar momentum, with private equity and REITs actively consolidating the space. A prime example: Peakstone Realty Trust’s (NYSE: PKST) $490 million acquisition of a 51-property IOS portfolio from Alterra IOS and J.P. Morgan in Q4 2024.

2. Who Uses the Space?

• IOS Tenants: Logistics companies, contractors, truckers, equipment rental businesses, and construction suppliers.

• RV & Boat Storage Customers: Individual owners, RV rental companies, and dealerships.

3. Zoning & Land Use Restrictions

• IOS: Typically requires industrial or heavy commercial zoning to allow truck parking, equipment storage, and logistics-related uses.

• RV & Boat Storage: More often permitted in commercial, retail, or light industrial zones since it caters to consumers.

• Overlap? Some sites with light industrial zoning could support both, but industrial zoning may not always allow RV & Boat Storage.

4. Site Layout & Infrastructure

• IOS Needs: Wide truck-turning radii, high-clearance access, and reinforced surfaces for heavy equipment. Typically minimal infrastructure, often just fencing and gravel.

• RV & Boat Storage Needs: Drive-up access for consumer vehicles, paved and marked parking spaces, covered areas, and sometimes climate-controlled enclosures.

• Overlap? A paved RV & Boat Storage lot could work for IOS, but a gravel IOS lot may not meet consumer expectations. Converting an RV storage site into IOS might require removing amenities like covered parking and pavement markings.

5. Location Factors

• IOS: Performs best near ports, rail yards, distribution hubs, and major industrial corridors.

• RV & Boat Storage: Strongest near suburban areas, recreational hubs, and highways leading to vacation destinations.

• Overlap? If a site sits near both an industrial zone and a high-income residential base, it could be viable for both. However, sites deep in industrial zones won’t attract RV & Boat Storage customers, and sites near residential areas may face opposition to IOS.

6. Lease Structure & Investment Fundamentals

• IOS Leases: Long-term (5-10 years), with large-scale tenants.

• RV & Boat Storage: Short-term (monthly/annual), with individual unit turnover.

• Rent Growth: IOS has seen rapid rent growth due to scarcity and logistics demand, while RV & Boat Storage is more consumer-driven.

• Overlap? Leasing to both at the same time would be difficult, but an IOS site could be converted into RV storage if demand shifts.

7. Who Are the Big Players?

• IOS: J.P. Morgan, Greenpoint Partners, Alterra, Peakstone Realty Trust, and Zenith IOS.

• RV & Boat Storage: Public Storage, Extra Space Storage, KO Storage, and self-storage REITs like RecNation (backed by Goldman Sachs).

Final Thought: Can a Site Work for Both?

✅ Yes, if: The zoning allows for both, the surface and layout accommodate different vehicles, and the location serves both industrial and consumer demand.
❌ No, if: The zoning is restrictive, the site is too industrial or too consumer-focused, or the infrastructure is too specialized for one use.

With institutional capital flowing into both sectors, IOS and RV & Boat Storage are becoming serious investment categories in the alternative real estate space.

Would love to hear your thoughts—do you see overlap in these sectors? Reply to this email and let’s discuss!

WORD ON THE STREET
RV/Boat Storage x IOS… The Mullet of Outdoor Storage