CHICAGO (July 14, 2023) — Northmarq’s BJ Feller, senior vice president and managing director, recently spoke with WealthManagement for the article, “Industrial outdoor storage rises in popularity among institutional investors.”
Feller said cap rates on traditional industrial properties have gotten aggressive in recent years, driving institutional capital to look for opportunities with a similar profile but more attractive cap rates.
“Once they’ve been able to establish their credibility and track record in the segment, we’ve seen operators have great access to the capital sources who want to play in this asset class,” Feller said.
Feller said equity inflows to the sector have “cooled to a certain degree” on a year-over-year basis but that they remain robust relative to other property types.
“Most of the decline has been a reaction to caution that cap rates may be going mildly higher and offer better acquisition opportunities in the months ahead,” Feller said.
Topics covered in the article include:
- Why industrial outdoor storage (IOS)?
- IOS portfolios.
- Institutional investor demand is growing.