Industry News You May Have Missed

Freight Market Stabilizes, Spot Rates Show Early Signs of Firming

After a prolonged freight downturn, industry data through January and early February show spot rates beginning to firm modestly in select lanes as capacity rationalizes and smaller carriers exit the market.

Why it matters for IOS: When rates stabilize, fleets start planning for growth again. That typically increases demand for trailer parking, drop lots, and short-term overflow yards near major corridors. Markets that saw distressed carriers over the past 12–18 months may now experience renewed leasing activity for well-located IOS sites.

Equipment Rental Giants Continue Expansion Mode

Major equipment rental operators continue opening new branches and infill yards in high-growth MSAs, particularly across the Sunbelt and dense urban markets.

Why it matters for IOS: Equipment rental remains one of the most consistent IOS demand drivers (along with construction & building materials and services). These operators require fenced, secure, heavy-duty outdoor space for fleet storage, maintenance, and dispatch. As branch density increases, competition for small-to-mid-acre infill IOS parcels tightens.

Building Materials Consolidation Continues

QXO announced its acquisition of Kodiak Building Partners in a multibillion-dollar deal aimed at accelerating its national roll-up of building products distribution. Kodiak operates dozens of lumberyards and specialty building supply locations across high-growth Sunbelt and Mountain markets. The deal signals continued consolidation in roofing, lumber, and specialty trade supply, with QXO positioning itself as a scaled competitor to major national distributors.

Why it matters for IOS: Lumberyards and specialty supply branches are inherently IOS users. They require fenced outdoor laydown for lumber, trusses, roofing materials, pipe, and bulk building products. As QXO integrates and scales its platform, expect continued demand for well-located, paved yard sites near residential growth corridors and infill trade hubs. Larger distributors typically centralize inventory and expand yard capacity — directly supporting IOS fundamentals.

Port Throughput Normalizes, Inland Still Tight

Port activity has largely stabilized, but inland hubs, especially near rail ramps and major distribution clusters, remain strained.

Why it matters for IOS: Even with softer imports, containers and trailers still need somewhere to sit. Yards near intermodal and warehouse corridors can benefit from overflow parking and short-term storage demand as logistics operators balance their networks.

Brookfield’s $1.2B Peakstone Deal

Brookfield Asset Management agreed to take Peakstone Realty private in a $1.2 billion cash deal, marking a major return to industrial outdoor storage after exiting a prior IOS portfolio just a year ago.

The PERE Podcast breaks down what qualifies as IOS, why capital is aggressively pursuing fragmented portfolios, and what today’s consolidation wave signals about the category’s long-term trajectory. The episode also features Price Booker, CIO at Realterm, discussing risk, underwriting discipline, and the expanding institutional opportunity set in IOS.

Why it matters for IOS: Institutional buyers are underwriting scale, portfolio aggregation, and long-term capital deployment. As larger players enter or re-enter the space, competition for stabilized portfolios and infill yard assets is likely to intensify, accelerating consolidation across the sector.

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