Experience Success With Industrial Outdoor Storage (IOS) Space
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Rising Demand for Industrial Outdoor Storage in Charlotte: Prime Locations Near Major Transport Hubs
With the increase of interest in industrial outdoor storage (IOS), Charlotte and surrounding areas of North Carolina rise to the top with convenient and workable IOS space. Industrial outdoor storage properties are coveted by businesses who want to use outdoor storage space for equipment, materials, and vehicles without having to invest as much money into a large building that they don’t need. Most of the companies who benefit from industrial outdoor storage space are in industries that don’t look like they’ll be slowing down anytime soon. These types of recession-resistant companies who are looking for available IOS space are causing these properties to be increasingly in demand for both businesses and investors.
Businesses who are utilizing this type of space are commonly in the industrial sphere and are often moving products and parts in and out. Because of this, IOS space that’s near busy interstates and highways are a top priority for many tenants. The landscape of Charlotte offers a network of busy highways and interstates (including I-85, I-77, I-485, and I-277) that connect its available industrial properties to the grid of roads across the U.S. It also offers easy access to Norfolk Southern Rail Intermodal Yard and the Charlotte Douglas International Airport – one of the busiest airports in the world.
What is Industrial Outdoor Storage (IOS)?
Industrial outdoor storage is an increasingly popular type of real estate that consists of an industrial building (generally on the smaller side) sitting on a larger amount of land. Usually, IOS properties are an acre or more. These types of properties are used for storage of equipment, vehicles, waste, supplies, containers, and other materials.
IOS sites are a niche of industrial real estate that’s focused more on the land than on the building. The significant outdoor storage component, which is often many acres of land, provides numerous opportunities for industrial outdoor ventures, which are continuing to rise.
Because of the amount of land required for this type of real estate investment, opportunities in the IOS market tend to be more scarce and more difficult to acquire than other property types, such as office space, retail space, flex space, and regular industrial or warehouse space. In fact, the strong demand for this type of commercial real estate property investments has caused IOS to grow to become a $200 million dollar market in recent years.
In the greater Charlotte market of North Carolina and South Carolina, our team at Regent Commercial Real Estate has risen to meet the investor demand for these properties. We’re proud of our community and the opportunities in the Charlotte MSA, and we celebrate the challenge of helping each client to find the ideal property for their investment or business needs.
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Other names for industrial outdoor storage
While industrial outdoor storage is probably the most popular title for this type of industrial real estate, it also goes by other names.
Industrial service facilities (ISF) is another term that you might hear for properties that are used to store equipment, vehicles, and materials outdoors.
In Mecklenburg County in North Carolina, you may also hear the terms ML2 (referring to the ML-2 Manufacturing and Logistics Zoning District, which is specific to industrial zoning) or I2 (again, referring to industrial zoning).
In South Carolina, you might hear the term UD (urban development).
And some areas refer to industrial outdoor storage properties as GI (general industrial).
The names you’ll hear for this type of real estate vary by county. But regardless of where you are, you can recognize this type of property by its industrial zoning and large (usually one acre or more) outdoor storage areas. Most have a small building on the property, although some buildings are larger.
What is Industrial Outdoor Storage (IOS) Space Used For?
Industrial outdoor space can be used for any type of business that’s storing items (often large items and equipment) outside. While they are sometimes used simply as lots or land to park vehicles, IOS facilities can also be used for much more. Common uses for industrial outdoor storage space include:
- Building supply house. A building supply house holds equipment and materials needed for building houses and other structures. This type of IOS storage area might hold products such as insulation, plywood, lumber, aluminum, fencing, or any other construction material types that are used to build a building or a house.
- Equipment rental company. An equipment rental company may rent out many different types of machinery and equipment. These specific sites might be used for storing trucks, excavators, backhoes, bulldozers, or other rentable equipment.
- Trash storage or landfill. Trash and recycling companies use IOS property to hold waste. These properties can be tailored to the specific needs of this type of use.
- Last-mile logistics facilities. A last-mile logistics building is used to hold products in the last leg of their journey to the customer. IOS properties can provide immediate access by creating convenient locations for the outdoor storage or truck terminals that are needed for the last portion of the product journey.
- Other types of storage. Other IOS uses include container storage, trailer storage, pallet storage, and more. Truck parking facilities also make up a large portion of this type of industrial property.
Key features of industrial outdoor storage
What are some of the key features of IOS? Here are some characteristics that are common for IOS assets.
- Significant acreage. IOS usually implies that a significant amount of land comes with the property. Usually, this land is an acre (43,560 square feet) or more. Often, its value is equal to or greater than the value of the building. Many IOS properties only have a small on-site facility and are mainly used for their outdoor space.
- Zoning. Industrial outdoor storage spaces need to be zoned in order for the property owner (or lessee) to be able to store items outside. Most industrial properties are zoned for light industrial or heavy industrial. Having properties re-zoned can be tricky, especially if you’re looking to have a property zoned to heavy industrial. This is one major reason why this type of property is more rare. The scarcity of these options drives the pricing of heavy industrial IOS properties up.
- Strategic location. Often – but not always – IOS properties are in more rural areas outside of town. In many cases, homeowners and businesses do not want to live next to industrial spaces, which means that IOS properties are often outside the main areas of the city. Still, in many cases, property owners and users want convenient access to their IOS investment, depending on its usage. Because of this, many of these commercial properties are strategically located in prime locations that are near highways and interstates without being too close to residential, retail, and office spaces. Of course, properties with convenient access to roads and interstates are usually on the higher-budget end of this industrial property type.
- Heavy equipment viability. This commercial property type is often used by heavy equipment and trucks. This means that the topography and soil must be sufficient for heavy driving and usage, including proper drainage and soil composition. IOS lots can be paved or gravel covered.
- Security. Although industrial outdoor storage attracts a wide variety of tenants who cover many different types of uses, security is important for a large percentage of these businesses. Since equipment and materials are being stored outside, it’s imperative to consider outdoor security measures such as fencing, lighting, and surveillance systems in order to keep the property and assets safe.
Why is Industrial Outdoor Storage Becoming So Popular?
As IOS space has continued to grow to an over $200 billion dollar market, more and more investors are contributing to the increased demand for this specific type of industrial space.
But what makes IOS real estate so popular, and why does the demand continue to grow?
Recession resistance
Even during COVID-19, the demand for outdoor space continued. Regardless of the pandemic, people still needed to build things, store things, and throw things away. Even items that weren’t being used still needed to be stored, and the open space that IOS offers provides the perfect solution in many cases.
During the pandemic years, much of the demand that was previously going into the office sector was redirected into IOS.
Cost efficiency
Because outdoor space is significantly less costly per square foot than indoor warehouse space, many businesses have found that utilizing IOS is incredibly cost effective. Trucks, equipment, and many types of materials do not need to be stored indoors, so these real estate solutions provide the opportunity for companies to safely store their items while also saving money.
Versatility
While industrial outdoor storage properties do need to meet specific requirements in order to be practical for their various users, the nature of these outdoor real estate spaces provides increased versatility for its users. The increased outdoor space means that property users don’t have to worry about factors such as stacking height, dock high doors, and many of the other specifics that are necessary for industrial and warehouse buildings.
This versatility gives businesses the option to easily adapt their processes and procedures. This also increases the demand, since new buyers or lessees of these properties can easily adapt them to fit their usage needs.
Availability
The cost of building materials and construction has continued to increase exponentially over the last few years. Building new buildings – and leasing and buying existing buildings – has become more and more expensive.
Since industrial outdoor storage properties are generally classified as one or more acres of land with only a small building, it’s much easier for investors to scoop up these properties without having to invest in building large buildings on top of them. Although the price of acreage has also gone up, buying land (and potentially adding a small and basic infrastructure) is much quicker and easier than constructing a large industrial building to go on it.
Environmental impact
Lastly, many environmentally-oriented businesses enjoy the option of industrial outdoor storage, since it cuts down on the need for electricity and additional construction that’s necessary for indoor buildings, lessening the environmental impact.
Industrial Outdoor Storage in the Charlotte MSA Neighborhoods
1. Industrial Outdoor Storage Space in Uptown Charlotte/Central Business District (CBD)
Uptown Charlotte, also called the Central Business District, is pretty densely built out already. This downtown area is filled with mostly office space and retail, and not surprisingly, attracts a large amount of traffic each day.
Because industrial outdoor space tends to be found further away from retail and residential areas, you won’t find IOS space in this densely populated part of Charlotte. In most cases, IOS space tends to be along major interstates instead of deeper inside the city.
Because Uptown Charlotte is an urban area, you’ll need to extend your search further away from town to find industrial outdoor storage.
One nuanced exception to this rule is companies who have office space downtown and land and/or a building elsewhere. For example, companies like AT&T have their office downtown – since it has quite a selection and abundance of office space – with land and a building further outside the city. These types of companies don’t need their IOS space to necessarily be in close proximity to the office.
2. Industrial Outdoor Storage Space in South End and Midtown
This area on the south side of downtown Charlotte isn’t much for industrial outdoor storage, either. Although there are a few options for industrial buildings in this area, the land portion is definitely scarce.
Inside I-485 – which is one of the major interstates that makes its way all the way around the city of Charlotte – you’re going to find much more retail, office, and residential space than industrial and outdoor storage space. (However, there is some industrial space along I-85 and the I-77 corridor.)
3. Industrial Outdoor Storage Space in Ballantyne and Blakeney
Ballantyne and Blakeney are known much more for retail, office space, and residential living compared to any sort of industrial or warehouse space. This area tends to be more affluent, and a lot of decision makers live in this part of North Carolina.
These cities are south of downtown Charlotte, right on the border of North Carolina and South Carolina.
While it has the benefit of excellent shopping and dining choices, a good school system, and even an outdoor mall, this area is much better suited for family living and white collar work than industrial space, especially industrial outdoor storage space.
4. Industrial Outdoor Storage Space in Airport
Even though it’s fairly close to the center of Charlotte (approximately a 15-minute drive), this area, west of downtown, does have some IOS space available.
The airport neighborhood is home to both the Charlotte Douglas International Airport and the Norfolk Southern Rail Intermodal Yard.
This bustling airport is the 7th busiest in North America in terms of air traffic. And on top of that, the Norfolk Southern Rail Intermodal Yard is connected to the largest ports on the East Coast (Charleston, SC and Savannah, GA). For these two reasons, this area of Charlotte is huge for industrial transportation. It’s constantly busy with trains and shipping containers, and so many big industrial submarkets of Charlotte are located right here within a 2-3-mile radius of the airport.
Because of this, a lot of the land is zoned for outside storage. In addition, the area around the airport also still has buildable land available, which shows potential for more industrial outdoor storage properties.
Areas like Graham Park Drive and Westinghouse Boulevard have large plots of land available for sale (over 10 acres), providing close proximity to the airport as well as major highways.
In addition, there are a number of properties available for lease in this area. Griffith Road and Westinghouse Boulevard are two common areas where you can find IOS space near the airport. Many of these properties already have warehouses with dock high doors and are ready for use.
5. Industrial Outdoor Storage Space in SouthPark
SouthPark is located approximately 6 miles from Uptown, south of the city (as its name implies!). This area is home to the upscale SouthPark Mall, which is filled with over 150 stores.
This area of North Carolina isn’t much for industrial space. It’s home to some of the area’s wealthier residents, and is much more popular for upscale living, shopping, and entertainment than industrial space.
If you’re looking for an excellent variety of shopping opportunities or a delicious dinner, though, SouthPark is the place to be!
6. Industrial Outdoor Storage Space in the Lake Norman Area: Davidson, Cornelius, Huntersville, and Mooresville
The Lake Norman area, consisting of Davidson, Cornelius, Huntersville, and Mooresville, does have some more rural parts away from the residential and retail areas. Because of this, there is some opportunity for industrial outdoor space in this area. However, most of these properties are on the smaller side, closer to an acre.
Most of the industrial space in this area is tailored toward the home improvement fields, because Mooresville is the headquarters of Lowe’s Home Improvement Center. As such, many of the home improvement vendors are located in this area.
7. Industrial Outdoor Storage Space in Fort Mill, Indian Land and Rock Hill
Fort Mill, Indian Land, and Rock Hill are just south of the North Carolina border and are located in South Carolina. This is a more rural area that stays busy with warehousing, distribution, and manufacturing, and it also has some industrial outdoor storage space, too.
These areas offer convenient access to I-77. In this collection of cities, Rock Hill is generally the most popular of the three for industrial outdoor storage.
8. Industrial Outdoor Storage Space in Matthews and Indian Trail
Matthews and Indian Trail are located southeast of Uptown, Charlotte. They both offer close access to I-485 and U.S. Route 74.
While it is primarily a suburban area, there is some industrial space as well as some IOS space available in these cities. Between the two, it’s generally easier to find IOS space in Indian Trail, since the city of Matthews is a bit more built out.
9. Industrial Outdoor Storage Space in Harrisburg, Concord, Kannapolis, Salisbury, and Mint Hill
These cities of North Carolina are spread along the east side of Charlotte and have the benefit of close proximity to the I-485/I-85 corridor. This area is more rural and has a lot of potential for industrial outdoor storage space. It’s a safe and affordable community that’s popular for industrial and warehouse space, too.
Because I-85 goes all the way from Washington D.C. to Alabama, this interstate is a major road for transportation. This benefit of being close to I-85 makes these cities of North Carolina especially popular for industrial businesses who are transporting product.
10. Industrial Outdoor Storage Space in Belmont and Gastonia
Belmont and Gastonia are west of Charlotte and have some rural areas that are prime locations for IOS space. A major benefit of this area is that it’s close to the I-85 corridor as well as U.S. Route 74. Although this space is already well-utilized by the blue collar industries, there are also a lot of new developments happening around Belmont and Gastonia – largely due to the convenience of Interstate 85.
This area provides opportunities for both smaller parcels and opportunities for more acreage (20+ acres) too.
11. Industrial Outdoor Storage Space in Steele Creek (Westinghouse Boulevard)
Steele Creek, which is located southwest of Uptown, near the airport, is a dense suburban area. This town in Mecklenburg County is well-loved for its family-oriented environment and friendly community, as well as the Charlotte Regional Farmers Market.
This area has some industrial outdoor storage properties.
12. Industrial Outdoor Storage Space in Pineville
Because of its proximity to I-485, the ring road around the city, Pineville is a good location for industrial outdoor storage real estate. Besides its convenient access to I-485, Pineville is also close to I-77, so industrial businesses enjoy quick and easy access to the interstate and can also get into South Carolina quickly.
Pineville has IOS options for both medium-sized lots (around 5 acres) and smaller, 1-acre lots.
13. Industrial Outdoor Storage Space Space in Plaza Midwood
Plaza Midwood is located just a mile from Uptown Charlotte, so the busy life of Uptown definitely bleeds into this area. This contemporary neighborhood is popular for young professionals and sports plenty of restaurants, vintage shopping opportunities, bars, and more.
In terms of real estate, this area is most common for office and retail space. Because of the packed nature of this downtown area, you won’t find industrial outdoor storage properties in this Charlotte neighborhood.
14. Industrial Outdoor Storage Space in NoDa
Much like Plaza Midwood (and located closely to it) this neighborhood just north of Uptown is another one that’s much more common for restaurants, bars, breweries, and retail than industrial spaces.
Although there used to be plenty of warehouse space in this area, most of it has been converted through adaptive reuse in this busy environment. You’ll need to venture further outside of the city’s center to find industrial outdoor storage space.
15. Industrial Outdoor Storage Space in University
Home to UNCC (The University of North Carolina at Charlotte), this area of Charlotte is popular for office space, but not so much for industrial outdoor storage space, or industrial space in general.
This neighborhood is north east of Uptown, Charlotte. Located on the I-85 corridor, its residents and visitors do benefit from easy access to the interstate.
16. Industrial Outdoor Storage Space in Monroe
Monroe is a more rural community that does have more opportunity for industrial outdoor storage space. Monroe is located on the south east side of Uptown, Charlotte, in Union County.
When it comes to real estate, Monroe is especially popular for manufacturing and industrial options. Because of its location near Route 74, it’s easy for companies to send product in and out. It’s also easy to quickly get to Indian Trail from Monroe.
Monroe is less saturated than other options in the greater Charlotte area, so if you’re looking for industrial outdoor storage space, it’s a good city to check.
17. Industrial Outdoor Storage Space in Hickory, Conover, Newton, and Lincolnton
These cities, located on the north west side of Charlotte, are more rural and often have affordable options for industrial space and industrial outdoor storage. While it used to be well-known for furniture making, this area still holds its own when it comes to manufacturing and distribution.
The close proximity to I-40 and U.S. Route 321 also give these neighborhoods lots of potential for industrial usage.
The available IOS properties in this area include existing warehouse space with outdoor infrastructure on acreage as well as build-to-suit options.
18. Industrial Outdoor Storage Space in Statesville
Statesville is north of Charlotte in Iredell County and is a good place to find industrial outdoor storage space. It’s a slightly more rural area outside the city, and so is often a bit less expensive than other areas.
This is a good community for industrial development and outdoor storage. The available properties in Statesville are located right around the intersection of I-77 and I-40, allowing for easy access in and out of the city in nearly every direction.
19. Industrial Outdoor Storage Space in Charlotte North – I-85/I-77 Corridor
Charlotte North – just north of Charlotte – has the benefit of being right on the I-85/I-77 corridor. The quick access provided by this area means that there are many opportunities for industrial space here. While it’s close to many conveniences, it’s also a great place for quick transportation in and out.
There are numerous industrial outdoor storage opportunities for lease in this area, and we commonly work with our clients to find IOS properties on this side of Charlotte.
Check out the case study below for one story of how Ben expanded his business with IOS space in Charlotte North.
Case Study: How Our Client Expanded His Outdoor Storage Space
The demand for industrial outdoor storage space continues to rise, and there are only so many lots available. Unlike other types of commercial real estate, the options can be limited for industrial storage space that’s outside.
This doesn’t have to be a negative, but sometimes it gives us the chance to get creative to find the properties that our clients need.
Ben owned a 10,000 square foot building on Equipment Drive in Charlotte. On this property, the company ran a business renting out heavy equipment. This meant that they needed to store a significant amount of equipment and vehicles on the property. They needed more land.
As we talked with Ben, we knew that he didn’t want to move from his current property, and he also needed land that was close by in order to keep the business running effectively and keep turning a profit. Regardless, it was clear that the operation needed the extra space in order to be efficient.
Our team at Regent decided to contact the gentleman next door to Ben’s property, who owned a restaurant and bar. In this type of situation, it’s important to keep the client’s identity private until the deal is negotiated. As we talked with the property owner next door to our client, we found out that he would be interested in leasing out his land. We struck up a deal, and Ben’s company was able to lease the land, demolish the restaurant building, and expand their yard by a 1/2 acre.
With nearly 1,000 closed deals, our team had the experience and expertise to help this client by contacting the property owner (who did not have the property listed), negotiating a fair deal for both parties, and helping with the process of having the building removed and improving the site for the tenant’s expansion.
Finding a property, negotiating the deal, and making the land and building work for you isn’t always as straightforward of a process as one might hope. However, with an experienced realtor on your team, finding the right commercial property is within reach.
Case Study: Finding an Even Better Option
The airport region just west of Uptown, Charlotte is a major hub for transportation, making it an excellent place for industrial businesses to easily move their products and parts. But although it provides this major transportation benefit, the opportunities also aren’t unlimited in this busy area. Many businesses covet the practical and convenient lots near this bustling hub.
We recently worked with Jack, who was representing a major, Fortune 500, U.S. car rental company. Jack wanted a great location near the airport for keeping excess rental cars. His goal was to find 2 acres within a 15-minute drive of the airport.
Jack found us on Google, and we were able to help him in his search for the perfect property for his rental car fleet.
Using our comprehensive search database tools, we were able to find him just what he was looking for.
Located on Remount Road, just 12 minutes from the airport, in a matter of days – we found the perfect lot.
And just in time, too.
The owner of this Remount Road property was one step away from closing on a different deal. Thankfully, this is where our years of experience in the Charlotte market came in handy. We happened to have a personal relationship with this property owner because we had already closed 10 previous transactions with him. Because of this, he chose to work with our team and offer the property to our client, knowing that he’d enjoyed many smooth and successful transactions with us in the past.
Real estate relationships
In real estate, success can be attributed to knowledge, search tools, certifications, genuine care for the client, and hard work.
But to be a top-level real estate agent, you also need time in the industry and relationships.
Throughout our many years of working in the metro Charlotte area, we’re been privileged to establish great relationships not only with clients, but also with other brokers, commercial property management firms, lenders, attorneys, and inspectors.
There are many people involved in the real estate process, and a well-connected broker can be a major asset to clients throughout the searching and closing process.
Thankfully, Jack got to experience the benefits of real estate relationships.
Considered IOS space in nature, his new property not only had 5 acres, but also a larger building that the company was able to use for the goods they needed to store and services they needed to perform inside.
This Fortune 500 company was able to sign a 5-year lease for the property, and we had the deal completed in less than 30 days.
Frequently Asked Questions
What is IOS?
IOS is simply an acronym for a type of real estate called industrial outdoor storage. This type of property is typically classified by having at least an acre (commonly 2 acres or more) with a smaller building on it. Businesses often use the outdoor space for equipment and storage, with minimal need for a large building.
What are other names for industrial outdoor storage?
The names you'll hear for this type of real estate vary by county. Other names frequently used for Industrial Outdoor Storage (IOS) are: Industrial Service Facilities (ISF); ML2 - Manufacturing and Logistics Zoning District; I2 - Industrial Zoning; UD - Urban Development; and GI - General Industrial.
Is industrial outdoor storage a good real estate investment?
In recent years, the industrial real estate sector has seen an overall increase in investment opportunities in the IOS space. These properties are ideal for many recession-resistant types of businesses, and they also provide versatility and excellent cost effectiveness.
The rising demand for industrial outdoor storage makes these properties an ideal opportunity for investors.
Where should you look for industrial outdoor storage?
Because industrial outdoor storage is classified as real estate with acreage (and usually a smaller building), it's most common to find these properties outside of the city in more rural areas. Pricing also tends to be more affordable in these areas.
At the same time, IOS properties are also often located near highways in order to create quick options for transportation of goods and materials.
Our experienced commercial real estate team at Regent is constantly searching the Charlotte area and beyond to find the most ideal industrial properties for our clients.
Find Your Next Industrial Outdoor Storage Property with Regent Commercial Real Estate
At Regent Commercial Real Estate, our process is much more than just searching the database for a property and meeting with clients for a showing. Instead, we make it a priority to really understand the goals of our clients in order to make sure each piece of the puzzle lines up for your real estate success. From finding the right property to negotiating a proposal to helping you with the details of transforming a space to meet your needs, we’re not afraid to put in the extra work in order to make sure that our clients are in the best position possible for a successful sale or lease.
Whether you’re looking for IOS, office space, flex space, retail, or warehouse space, we’d love to have you join the over 900 businesses who have worked with us to get the best commercial real estate properties for their needs. As a CCIM- and SIOR-certified realtor, we pride ourselves on giving our clients the highest level of knowledge and service.
Ready to start your search? Contact us today.
