EXPERTS IN INDUSTRIAL OUTDOOR STORAGE
IOS Southwest aquires and operates industrial outdoor storage assets within underserved markets in Arizona. We aim to meet the needs of businesses that require outdoor storage, yard space, or trailer parking as a part of their normal operations.
What is Industrial outdoor storage?
IOS is open-air yard space used by commercial and industrial companies; sometimes also known as contractor yards, lay-down yards or low coverage sites.
Example #1:
Trailer / Container Parking
E-commerce and logistics to store and stage trucks, trailers and containers.
Demand Driver:
New industrial projects are built to higher building coverage ratios, leaving less room for trailer parking.
Example #2:
Fleet Parking, Maintenance, and Operations
- Construction vehicles
- Equipment Rentals
- Municipal & commercial fleets
Demand Driver:
These can’t be parked on streets! Fleets need secure yards for overnight parking and vehicle servicing
Example #3:
CONSTRUCTION EQUIPMENT / MATERIAL STORAGE
- Construction equipment
- Materials: Pipes, lumber, fencing, rocks, etc.
- Salvage yards
Demand Driver:
The size, volume, and nature of these materials requires outdoor space with good access to markets and customers
User Services
Every business that requires outdoor storage, yard space, or trailer parking as part of their normal operations knows how tough it is to find good space. IOS Southwest has solutions.
User Challenges
IOS Southwest Solutions
- Opaque Market:
There is insufficient and unreliable data on inventory, occupancy rates, market rents, and comps.
- Expertise:
IOS SW specializes in Arizona markets and has a deep knowledge of local conditions and activity.
- Site Search Challenges: Industry resources like CoStar, LoopNet, and Crexi have limited options to filter specifically for IOS sites.
- Operators:
Lease space within an existing IOS Southwest asset.
- Tight Market Conditions:
Infill IOS is near capacity: Users must find space within limited existing inventory.
- Options:
IOS SW maintains a running database of on and off-market assets to help find IOS spaces that match user requirements.
- Limited Supply Growth: Current land costs make new IOS developments cost prohibitive, and municipalities will not rezone land to support new IOS use.
- Acquire and Redevelop: Partner with users to identify, evaluate, and then improve sites to meet their specific needs.
- Unsophisticated Operators:
Fragmented industry dominated by ‘mom and pop’ owners and landlords who can be inconsistent and unpredictable.
- Experience:
Over 65 years of combined investment experience, plus knowledge of the unique economics and characteristics of IOS space.
Acquisition Criteria
Our Investment Strategies
- Lease-Up: Assets with vacancy and/or near-term lease expirations
- Sale-Leaseback: Opportunities to partner with owner/users via sale-leaseback acquisitions
- Ground-Up Development: Well-located sites for build-to-suit and spec projects
- Redevelopment: Existing facilities facing obsolescence or other functional challenges/limitations
- Stabilized Assets: Assets with medium- / long-term leases in place
Location Preferences
- Phoenix, Casa Grande and Tucson infill locations
- Freeway Access within Industrial Corridors
- Proximity to Rail/Intermodal Facilities
Deal Characteristics
- $2 million to $20+ million
- Value-Add Component
- Will Accept Leasing Risk
Property characteristics
- 2+ Acres
- Building FAR: <25% Land Coverage
- Vacant Land
- Adequate Zoning
- Imperfect/Challenged Sites OK ✓ Irregular Shape
✓ Flood Zones
✓ Building Restrictions
✓ Visibility/Access Issues
IOS Southwest Sponsors
Duff James Hearon
Principal
Duff J. has over 14 years of experience in real estate and asset management. Duff J. has worked part-time for Ashland Group since 2010, and full-time since 2020. Duff has extensive experience in real estate finance, operations and management. Prior to Ashland Group, Duff J. obtained his CPA (inactive) while working with Ernst & Young. Duff J. is a member of ULI Next, Valley Partnership, Pinal Partnership, and Pima Country Real Estate Research Counsel.
David Kinney
Principal
David has 17+ years of commercial real estate investment experience, with nearly 15 years at VEREIT, Inc. As Vice President of Underwriting, he specialized in structuring acquisitions, focusing on office and industrial assets, underwriting over $5 billion in VEREIT acquisitions, including $250 million in industrial outdoor storage investments. He holds an MBA from Arizona State University and a BS from the University of Miami.
CONTACT US
DAVID KINNEY
DUFF HEARON
3610 N 44th St, Suite 140, Phoenix, AZ 85018