What Makes a Class A IOS Site?

YardDogs -

We’ve been hearing this question a lot lately, so let’s break it down!

Unlike Class A industrial buildings, there isn’t a strict industry standard for Class A Industrial Outdoor Storage (IOS)… at least not yet. But in general, Class A IOS refers to high-quality, well-located, and highly functional outdoor storage yards.

DEFINING CLASS A IOS
What Sets Class A IOS Properties Apart?

🔹 Paving & Surface Quality – Fully paved (concrete/asphalt) with proper drainage, avoiding gravel or dirt that causes maintenance headaches.
🔹 Zoning & Permitting – Fully entitled for IOS, with by-right zoning (no variances needed).
🔹 Functionality – Wide turning radii and multiple access points for seamless truck movement. Typically 5+ acres, with layouts that maximize storage capacity and truck maneuverability.
🔹 Security & Fencing – perimeter fencing, gated access, and often cameras or on-site security.
🔹 Utilities & Infrastructure – Power, water, and sometimes office space.
🔹 Drainage & Environmental Compliance – Designed to prevent flooding and meet environmental regulations.

Class A vs. B vs. C IOS

A generalized set of characteristics of each IOS Class:

Feature

Class A 

Class B 

Class C 

Surface Quality

Fully paved, excellent drainage

Mostly paved or well-compacted gravel

Unpaved or poorly maintained

Zoning & Permitting

Fully entitled, by-right zoning

Some zoning approvals needed

Potential zoning issues

Functionality

Wide access points, easy truck movement, optimized site

Decent truck access, functional but not optimized

Limited access, difficult maneuvering, irregular site

Security & Fencing

High-security fencing, gated access, surveillance cameras, ample lighting

Perimeter fencing, basic lighting, limited surveillance

Minimal or no fencing, poor lighting, no surveillance

Utilities & Infrastructure

Power, water, office space

Basic utilities, limited office

Minimal or no utilities

Drainage & Environmental

Designed for compliance

Basic drainage, may need improvements

Poor drainage, potential environmental risks

Does Age Matter for Class A IOS?

Unlike industrial buildings, age alone doesn’t disqualify an IOS site from being Class Afunctionality is what matters most.

3 Ways Vintage Impacts Class A IOS:
1️⃣ Newer Builds & Purpose-Built IOS – Designed from the start with paving, drainage, and security.
2️⃣ Redeveloped Older Sites – Upgraded yards with full paving, security, and improved ingress/egress can qualify.
3️⃣ Maximum Vintage Considerations – If an older site has outdated layouts, drainage issues, or security risks, it likely won’t be Class A.

Key Takeaway:

  • Newer IOS builds are often Class A by design, but older sites can be Class A if upgraded to meet modern standards.

  • The defining factor is functionality and infrastructure, not necessarily age.

Final Assessment:
If a property meets at least 80% of these criteria, it can generally be considered Class A IOS. If it falls short in multiple key areas (e.g., unpaved surface, poor security, zoning restrictions), it may be Class B or C.

One of the unique advantages of IOS properties is their longer-term obsolescence cycle compared to traditional industrial assets. Unlike warehouses, which can become functionally obsolete due to ceiling height limitations, dock configurations, or evolving tenant needs, IOS sites maintain their utility over time with minimal structural changes. Their inherent flexibility allows them to serve a wide range of users—logistics firms, equipment storage, fleet operators, and material laydown yards—without requiring extensive redevelopment.

As long as an IOS site remains well-maintained, properly zoned, and strategically located, it can continue generating value for decades with only minor infrastructure improvements.

Want a Class A Yard? Surface Tech can help!

Elevate your industrial yard to Class A standards with Surface Tech's advanced paving solutions. Their ARCA (Aramid Reinforced Composite Asphalt) technology extends pavement life by up to 40%, reduces maintenance costs, and enhances sustainability to ensure your yard meets top-tier functionality and compliance.

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 Yard Dogs 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.