What’s Fueling Industrial Outdoor Storage Deals With Andrew Wiesemann – RFP 83

The Real Finds Podcast: Why Industrial Outdoor Storage Is Becoming the Most Misunderstood Opportunity in Commercial Real Estate

Every so often, The Real Finds Podcast brings on a guest who reframes the way we look at a corner of commercial real estate. This week, that guest was Andrew Wiesemann, an operator who went from buying multifamily in Chicago to becoming one of the most respected voices in industrial outdoor storage (IOS).

Our conversation goes deep into why IOS is exploding, why supply is disappearing in real time, and why many cities still struggle to understand a land use category that quietly powers everything from logistics to data centers.

But more importantly, Andrew walks listeners through how to evaluate IOS the right way, not through hype, not through Twitter threads, but through zoning, user operations, long-term functionality, and market structure.

This episode is a blueprint for anyone curious about the asset class, whether you’re an investor trying to enter the IOS market, a landlord sitting on a yard you don’t fully understand, or a municipal leader wondering why your “ugly” sites are suddenly getting calls from major national operators.

Here are the biggest takeaways from our conversation.

How Andrew Got Into IOS And Why His Background Matters

One of the most interesting parts of this episode is Andrew’s path. He didn’t come up through industrial brokerage. He started on the principal side, buying multifamily in Chicago for a family office. But after years of management-intensive operations, shifting taxes, and the grind of Cook County ownership, he looked for something simpler, something more predictable.

That led him to single-tenant industrial across Wisconsin and Indiana — and eventually to a 10-acre site in Lansing, Michigan where he discovered something most industrial investors overlook:

The tenants didn’t care about the building. They cared about the yard.

Outdoor storage wasn’t an accessory; it was the core of their operations. Once Andrew saw that pattern, he realized IOS had the three traits every investor dreams of:

  • Mission-critical user base
  • Scarce, misunderstood supply
  • Clear rent growth potential

His experience on the principal side is why this episode resonates: Andrew approaches IOS not like a broker chasing comps but like an owner trying to understand long-term durability and operational usefulness.

The Heart of the Episode: Why IOS Supply Is Shrinking Even as Demand Explodes

Andrew breaks down IOS with a clarity that few operators have, starting with the biggest reason IOS rents are rising:

1. Zoning has quietly erased IOS supply.

Heavy industrial zoning is typically the only category that allows outdoor storage by right. But during the 2000s big-box boom, developers bought up heavy industrial land nationwide and turned it into large-format distribution buildings.

That meant:

  • Heavy industrial land disappeared
  • The land that remained became grandfathered uses
  • Municipalities tightened restrictions for visual, environmental, or political reasons

So today, IOS is stuck in a paradox: users need it more than ever, but cities no longer allow it to be built.

2. Generational turnover is fueling deals.

Chicago, Dallas, Atlanta, the Carolinas, every region has older operators sitting on highly functional IOS sites:

  • Junkyards
  • Scrap yards
  • Small equipment dealers
  • Family-owned contractors

Their kids aren’t taking over and many of these families are sitting on assets that are more valuable as land than business operations. Andrew sees it everywhere. You probably see it too if you’re in the field every day.

3. Demand is diversifying far beyond trucking.

IOS isn’t just truck parking. In fact, trucking only represents 10–15% of IOS users.

The big categories today:

  • Equipment rental companies
  • Data center construction partners
  • Utility contractors
  • Waste and environmental services
  • Heavy equipment leasing
  • Building materials distributors

Every category above is growing, not shrinking. Every category requires outdoor storage. Municipalities often don’t like these uses, but their economies depend on them.

4. Class A IOS is defined by operations, not aesthetics.

Andrew makes a key point for investors: A “nice” site isn’t Class A — a functional site is.

What users truly care about:

  • Two points of ingress/egress
  • Wide truck flow
  • Stabilized yard (especially concrete for equipment storage)
  • Lighting and security
  • Proper clear heights
  • Proximity to highways or intermodals

Gravel does not define a Class C property. Bad truck flow does.

5. Cap rate compression is coming.

Right now, IOS trades at a spread over traditional industrial space because many lenders and investors simply don’t understand it. But data is growing. Portfolios are trading. REITs are forming. Institutional capital is normalizing around the asset class.

Andrew’s take: the spread will tighten faster than most expect.

What Investors Need To Evaluate Before Buying IOS

One of my favorite parts of the episode is how tactical Andrew gets about due diligence. He shares a straightforward three-step filter that every IOS investor should use before writing an LOI:

  1. Verify zoning first.
    Not last. Not in the middle. First. Many old sites lost their rights years ago.
  2. Understand market and replacement rents.
    Don’t underwrite to your current tenant. Underwrite to the next one.
  3. Evaluate long-term functionality.
    Clear heights, pavement, ingress/egress, truck flow — will this site still work 10 years from now?

He also flags a forward-looking risk: development at the edges of major metros. As investors try to build new IOS on the outskirts to capture spillover demand, they risk overestimating rent potential in markets with no historical comps. The next phase of IOS will include both opportunity and overreach.

Why Infrastructure, Not Hype, Drives IOS Demand

Andrew follows a simple rule: follow the highways, follow the ports, follow the infrastructure.

That’s why IOS thrives in:

  • Chicago’s I-80 / I-55 / I-94 corridors
  • Dallas–Fort Worth
  • Memphis
  • Kansas City
  • Savannah and Mobile
  • Inland port markets

Infrastructure is destiny in IOS. If the region is a freight hub, an energy hub, a port hub, or a data center hub, IOS will follow.

The Podcast’s Big Lesson: Specialize and Know Your Users

In the final section of our conversation, Andrew shared something he wishes he had learned earlier:

Pick one thing and go all-in.

He became an expert not by reading theory, but by spending years learning how IOS users actually operate, what equipment they store, how they move trucks, what fencing they need, how they view rent relative to gross revenue.

That knowledge is why investors trust him today. And it’s exactly why this episode is worth a listen.

Gordon Lamphere J.D.

Gordon is a licensed Illinois & Wisconsin Real Estate Broker, who manages the commercial sales and leasing team. Gordon also leads Van Vlissingen and Co’s media marketing team. He is an honors graduate of St. Mary’s College of Maryland and holds a Juris Doctorate from Tulane University Law School.

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