YardDogs -
Today we’re recapping insights from Blake Rogers of Steel Peak, featured on the podcast Zen & The Art of Real Estate Investing — a deep dive into acquiring and scaling Industrial Outdoor Storage.
IOS NEWS AND RELATED
Inside the IOS Acquisition Playbook — Lessons From Steel Peak
A growing number of IOS operators are scaling portfolios by following a simple formula: buy small, functional contractor yards, improve usability, and lease to mission-critical users. Steel Peak’s Western U.S. strategy is a prime example of how this model can work in practice. Let’s dive in:
What They Buy
• 1–10 acre contractor yards across the Western U.S. (Seattle, Denver, Phoenix, SoCal)
• Heavy industrial zoning with limited new supply
• Small building, large yard — true value lies in the land and zoning
• $3M–$25M deals
• Single-tenant focus for simplicity and control
Steel Peak targets markets with tough entitlements and limited competition, leveraging broker relationships and repeat credibility.
How They Add Value?
• Value-add = Subtract → remove excess buildings, open circulation for trucks
• Invest in function: grading, drainage, surfacing, fencing, lighting, gates
• Deliver clean, flexible yards ready for immediate use
• Lease to construction, equipment rental, building supply, and utility users
• Triple-net (NNN) leases minimize management
These aren’t ground-up developments — they’re quick-turn rehabs unlocking value through usability and zoning.
Who Are the Tenants?
• Construction and utility contractors with long-term public contracts
• Equipment rental operators (United Rentals, Sunbelt, etc.)
• Building materials suppliers and logistics users
• Sticky tenants tied to 5–10 year projects, leading to long-term leases
• Need proximity to highways, infrastructure, and secure outdoor storage
Demand far exceeds supply — many tenants search years for IOS space.
Why It Works
• Cities rarely zone new heavy-industrial outdoor yards → permanent scarcity
• Shrinking supply + steady demand = rent growth and low vacancy
• Single-tenant NNN = predictable, low-touch income
• Clear “buy box” builds broker trust and attracts institutional capital
Steel Peak’s growth path: syndications → institutional equity → portfolio recap or sale
YardDogs Take
There’s no single formula for success in IOS — playbooks differ by market, capital stack, and strategy. But some of the best operators share three things in common:
Clarity — a tight buy box with zoning certainty
Functionality — sites that serve the tenant’s operational needs
Discipline — sticking to their criteria and not chasing off-strategy deals
These fundamentals are proving durable in markets across the country.
Listen to the full podcast here: https://www.youtube.com/watch?v=4t84eAkIXfo&t=2567s
Your Go-To IOS Resources:
Start with our guide: What is Industrial Outdoor Storage?
IOS Underwriting Model: Underwrite IOS in Under 2 Min — No Spreadsheet Required
Other Resources
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Disclaimer: The authors of IOS YardDogs are not finance or tax experts. We love big yards, small buildings. This email is for educational uses and is not financial / investment advice. Please conduct independent research and consult with industry professionals before making financial or investment decisions. Our content, which may contain affiliate links, is subjective and not to be used as the only basis for such decisions. We are not responsible for any losses from relying on this information.