RecNation, Backed by Goldman Sachs, Is Betting on Industrial Outdoor Storage — Here's Why That Matters

THOUGHT OF THE WEEK
Understanding RecNation’s Announcement

RecNation’s announcement regarding expansion into both lifestyle and commercial markets isn’t just about capturing more of the storage market — it’s about responding to broader changes in demand.

As RV and boat ownership remains strong and contractors, logistics operators, and service businesses continue to seek reliable, secure outdoor storage for trucks, trailers, containers, and equipment, a "pure play" focus on recreational storage leaves opportunities on the table.

By adding IOS properties to its portfolio, RecNation is positioning itself to serve both lifestyle and commercial customers — two very different groups with overlapping needs.

This expansion comes shortly after the announcement of RecNation’s strategic partnership with Goldman Sachs. With Goldman’s backing, RecNation has greater access to capital, operational resources, and institutional expertise — giving them the firepower to scale quickly in IOS just as they have in RV and boat storage.

Why This Matters

This move underscores a trend we touched on last time: while RV & Boat Storage and IOS might share physical similarities, they are still distinct asset classes with different user bases, operational challenges, and zoning considerations.

But RecNation’s announcement highlights something else: the line between these two sectors might be starting to blur. And as that happens, we're likely to see more storage operators, who historically focused only on recreational customers, start exploring IOS — and possibly doing it at scale.

Implications for Current IOS Investors

For those already investing in or operating IOS properties, RecNation's entrance into the space brings both opportunity and new considerations:

• More players entering the IOS market means more competition — not just for land and acquisitions, but also for tenants. This could raise the bar for tenant expectations around service levels, security, and amenities while land competition is likely to intensify, especially in fast-growing metro areas where outdoor storage land is already scarce and zoning is tight.

• Greater visibility and attention on the IOS sector overall. Institutional and quasi-institutional groups recognizing IOS as a viable growth area could increase liquidity for owners looking to exit, drive valuations higher in some markets, and even encourage new financing options that weren’t previously available at scale.

• More diversified revenue streams remain one of IOS's biggest strengths. Investors who can offer flexibility — targeting both commercial users and recreational vehicle owners — may unlock even broader demand. Properties or ownership portfolios that can accommodate RVs, work trucks, construction equipment, and trailers could weather economic cycles better than assets that serve only one niche.

Final Thoughts & Looking Ahead

RecNation’s move into IOS, especially with the support of a heavyweight like Goldman Sachs, is yet another signal that outdoor storage could be entering a new phase. What was once a relatively overlooked asset class is rapidly becoming more institutionalized, competitive, and diverse.

For current IOS owners and investors, now might be the time to double down on operational excellence, tenant diversification, and strategic site selection. The opportunity remains strong — but it is also important to keep in mind that the landscape is changing rapidly.

Would love to hear from you — are you seeing more competition for IOS deals in your market? And are operators chasing both IOS and RV & Boat storage deals? Reply to this email to keep the conversation going!

RECS
Industrial Outdoor Storage (IOS) vs RV & Boat Storage

Want to revisit the full breakdown of IOS versus RV & Boat Storage? Check out our previous article here.

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