When most people think of industrial real estate, they picture large warehouses or distribution centers. But a niche within the sector, industrial outdoor storage (IOS), is creating new opportunities for investors. In this episode of Zen and the Art of Real Estate Investing, Jonathan sat down with Blake Rodgers, co-founder of Steel Peak, to explore why IOS is worth a closer look.
Blake’s journey into real estate began in college, where he joined a real estate club and landed his first internship as a commercial broker. That experience led him to JLL, where he gained exposure to large-scale industrial properties just as demand was surging. Today, he and his business partner focus exclusively on IOS across the Western U.S.
So what makes IOS compelling? These properties typically feature small buildings with large yards, ideal for construction companies, equipment rental businesses, and transportation firms. Many are owned by mom-and-pop operators who are ready to retire. Steel Peak acquires these sites, repositions them, and leases them to national tenants under long-term triple-net leases. The result is a steady, scalable model that reduces vacancy risk and creates long-term value.
Blake explains that the key to success in IOS is focus. By defining a tight buy box, building strong broker relationships, and leveraging institutional capital, Steel Peak has acquired ten properties in just 18 months. For investors, IOS represents a chance to diversify into an asset class that remains under the radar but continues to see strong demand.
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