Rising rents draw Wall Street money to industrial outdoor storage lot investments across the U.S.

Brookfield and Blackstone are investing in industrial outdoor storage (IOS), yards where businesses keep equipment such as trucks and bulldozers. Their interest is growing as infrastructure, energy and AI-related construction increase demand for heavy equipment, while institutional investment could bring more capital and professional management to a fragmented market.

Brookfield paid $1.2 billion for Peakstone Realty Trust, gaining more than 70 industrial properties, mostly storage yards. Blackstone’s real estate debt arm has made six IOS loans worth more than $1.1 billion. Across eight major US markets, average IOS rent per usable acre rose 103.5% from 2020 to the third quarter of this year, reaching nearly $11,000 a month; traditional industrial rents increased 66%. Growth varied, with Baltimore, Houston and Norfolk leading, while South Florida and Savannah lagged traditional industrial.