Relative value in industrial outdoor storage

Concentration

Institutional capital has crowded into a few large metros

Pricing in those markets now reflects their intrinsic value. On the other hand, far fewer institutions compete in secondary and tertiary metros, comprising only ~4% of total IOS purchases versus ~13% in the top 25 MSAs. Well-located, well-leased properties in non-primary markets can still be acquired at attractive going-in yields.

MVP analysis of CoStar sale records, January 2022 to October 2026: 1,141 institutional IOS purchases, $5.9 billion where the price was disclosed. Institutional buyers are investment managers, REITs, funds, insurers and the large IOS owners we track; owner-users are excluded. IOS means industrial or land sites of 1 to 25 acres with low building coverage. Metros are ranked by population (Census 2025 estimates). The 4% and 13% institutional shares are estimated from a sample of purchases in the 25 most populous metros and about 70 metros outside them.

Underwriting

Underwriting markets where desktop comps fall short

Before breaking into a new market, MVP maps it out in its entirety: every single IOS parcel with zoning, rent comps, and historical sales overlaid. After bringing a property under contract, we always walk the site and drive the market. Our boots-on-the-ground approach enables us to get comfortable where data points and commentary are scarce.