YardDogs -
Last week, we covered IOS properties that look great on a map—until you walk them and find issues like poor access, drainage problems, or unusable layout.
This week, we’re flipping the script.
Some of the best-performing IOS sites don’t show well in photos or pencil out perfectly on a spreadsheet. They might have odd shapes, rough surfacing, limited visibility, or low curb appeal. But they lease quickly, stay occupied, and perform consistently.
Let’s take a look at what makes these underdog yards successful!
“CLASS FUNCTIONAL” SITES
When a Site Doesn’t Look Great—but Still Works
Here are a few reasons why that happens:
1. The layout meets a real operational need.
A site might not be a perfect rectangle or have textbook frontage, but that doesn’t matter if it solves a specific use case. Many IOS tenants prioritize function over form. If the yard layout matches how they operate—whether that’s trailer storage, material staging, or fleet parking—they’ll take it.
That odd triangle-shaped parcel? It might be perfect for a local contractor who doesn’t need big circulation. A long, narrow flag lot with a driveway easement? That might be exactly what a fleet wants—because they can back in trucks overnight and stay out of sight.
2. It’s not pretty—but it’s practical.
Some properties don’t need top-tier paving or a sleek entry to attract tenants. As long as they’re usable and they get the job done. Tenants are often looking for simplicity and flexibility, not flash.
We’ve seen tenants skip beautifully paved sites in favor of a gravel yard because they:
Are cheaper
Drain better
Aren’t next to a NIMBY neighborhood
Already have utilities in the right spot
Investors might see “low curb appeal.” Operators see “no nonsense.”
3. It wasn’t over-marketed—so pricing still makes sense.
A site that doesn’t check every institutional box might be overlooked by larger groups, which can keep pricing grounded. That leaves room for buyers who understand the market and know what local tenants are actually looking for. In many cases, those “B or C” assets end up delivering solid yield with less competition.
Sometimes, these yards trade at attractive cap rates or a good basis simply because they don’t fit the box perfectly:
Not quite big enough
A little close to residential
Doesn’t visually look great in a pitch deck
Other Things We've Seen
Sometimes the features that make a yard work aren’t obvious from the listing. A few under-the-radar wins we’ve seen:
Drive-through layouts that make truck flow seamless—even on narrow sites
Built-in utilities like heavy power from a former use
Extra land beyond the fence line that’s already graded and can be usable
No neighbors—zero complaints, zero pressure
Office trailers that are already in place and in use
These small details can turn an average yard into a high-demand site.
The Big Takeaway
Not every IOS site needs to be Class A. Some of the best ones are just... “Class Functional”.
So if a yard looks rough at first glance, don’t write it off. It might have exactly what matters: access, utility, flexibility, and tenant demand.
Have a story of an underdog yard?
Send it our way. We’d love to hear about a functional yard that outperformed but might not have been the prettiest at the start—and we might feature yours in an upcoming issue!
New to IOS?
Start with our guide: What is Industrial Outdoor Storage?
Got Deals?
Get your listings in front of the right people! If you have an IOS sale or lease listing (or something else you want to highlight), just shoot us an email at [email protected] and we’ll make sure it reaches the right audience.
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.