Consolidating the Fragmented Industrial Outdoor Storage Market: A Lucrative Opportunity for Institutional Investors

SAN JUAN, PUERTO RICO / ACCESSWIRE / March 9, 2023 / The industrial real estate market has been steadily growing, and Industrial Outdoor Storage (IOS), a sub-segment of the market, has shown remarkable resilience even during economic downturns. However, institutional investors have historically ignored the IOS market, resulting in fragmentation and missed opportunities for higher margins due to a lack of economies of scale. Despite this, recent interest from institutional investors has set the stage for consolidation, which has the potential to unlock significant returns.

The IOS market is currently valued at $110 billion and is being driven by several factors, including the rise of e-commerce and the trend of onshoring and reshoring. These trends have resulted in consistently rising rents and decreasing vacancies in IOS, making it an attractive investment opportunity for institutional investors.

Acies Group LLC, Thursday, March 9, 2023, Press release picture
Acies Group LLC, Thursday, March 9, 2023, Press release picture

Consolidation is an effective way to address the inefficiencies caused by the fragmentation of the IOS market. It can improve pricing power and lead to higher margins and better financial performance. Invitation Homes, backed by Blackstone, is a good example of a successful consolidation opportunity in the single-family rental market, achieving significant returns for its investors.

Similarly, the IOS market is ripe for consolidation, and 9606-Acies, a company with specialized expertise in the industry, is uniquely positioned to take advantage of this trend. The company has a proven track record of success, having achieved a 2.7 equity multiple on a portfolio exit in just two years. Their data-driven approach allows them to analyze industry trends, customer needs, and market conditions to develop customized solutions for businesses.

9606-Acies has a deep understanding of property construction and facility redesign, enabling them to improve efficiency for users and lead to higher net operating income for investors. Their state-of-the-art facilities are equipped with the latest technology and security features, providing the best possible storage solutions for businesses.

Consolidation in the IOS market presents a significant opportunity for institutional investors, particularly with the specialized expertise and proven track record of success that 9606-Acies offers. By focusing on customized solutions and improving efficiency, the company can unlock significant value for investors while meeting the growing demand for IOS.

Sources:

  1. "Industrial Real Estate Maintains Strength in 2022" by CBRE https://www.cbre.com/insights/figures/q4-2022-us-industrial-figures

  2. "Industrial Outdoor Storage: An Emerging Asset Class in Today's Dynamic Industrial Market" by Northmarq https://welcome.northmarq.com/trends-insights/research-library/industrial-outdoor-storage-emerging-asset-class-todays-dynamic

  3. "Industrial Outdoor Storage Special Report" by Marcus Millichap https://www.marcusmillichap.com/research/special-report/2022/10/ios-special-report

  4. "Blackstone's $9.6 Billion Bet On The U.S. Housing Recovery Files To Go Public" by Forbes https://www.forbes.com/sites/antoinegara/2017/01/06/blackstones-big-bet-on-the-u-s-housing-recovery-files-to-go-public/?sh=78cbe29b3dba

Acies Group LLC, Thursday, March 9, 2023, Press release picture
Acies Group LLC, Thursday, March 9, 2023, Press release picture

About

9606-Acies is a leading investment company that specializes in Industrial Outdoor Storage (IOS), a sub-segment of the industrial real estate market that has historically been ignored by institutional investors. With a proven track record of success in the industrial real estate market, 9606-Acies is uniquely positioned to take advantage of the consolidation opportunity in the IOS market

CONTACT:

Ned Mahic
Acies
ned@aciesre.com

SOURCE: 9606-Acies



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