The acquisition and subsequent property improvements highlight the importance of location, infrastructure, and functionality in the industrial outdoor storage market.

Lee & Associates of Eastern Pennsylvania recently arranged the sale of 102 Commerce Way, a 2.63-acre industrial property in Stockertown, Pennsylvania, to Industrial Outdoor Ventures (IOV), a real estate investment firm specializing in industrial outdoor storage (IOS) properties. Erin Downey, CCIM and Matt D'Alesio of Lee & Associates facilitated the transaction and are now marketing the property for lease on behalf of the new ownership.

Located near Route 33 in the Lehigh Valley, the property features a 20,667-square-foot building with warehouse, showroom, and office space, along with secured outdoor storage. Previously occupied by a tire sales and service business, the site attracted interest from a variety of prospective buyers, including manufacturers, automotive businesses, and investors.

"We had a good amount of activity from different types of buyers," said D'Alesio. "IOV recognized the potential of the property and had the ability to make the improvements necessary to reposition it for today's industrial users."

Following the acquisition, IOV undertook substantial improvements to the property, including renovations to the office and warehouse areas, exterior building updates, and improvements to the paved outdoor storage area. The property now offers secure paved storage, covered storage areas, and updated interior facilities, providing flexibility for a range of industrial users.

“Eastern and Central Pennsylvania has great fundamentals,” said David Laser, Acquisitions Associate with Industrial Outdoor Ventures. “It’s one of the top regional distribution markets in the country, and you can reach more than half the U.S. population in a day’s drive. Demand is strong, the ports are close, and supply is tight in the neighboring markets. We feel the timing is right to grow our IOS portfolio here, and this site gives us a strong foothold in the region.”

 

Finding the Right IOS Property Is About More Than Acreage

Industrial outdoor storage serves businesses whose operational needs extend beyond traditional warehouse space. Contractors, equipment rental companies, transportation operators, and certain manufacturers often require a combination of indoor workspace and outdoor areas for equipment, materials, vehicles, and inventory.

However, finding properties that accommodate those requirements is not always straightforward. According to Downey and D'Alesio, the challenge often involves identifying sites with the appropriate location, configuration, infrastructure, and permitted uses.

"There's not a tremendous amount of suitable inventory available, particularly when you're looking for a specific size or configuration," D'Alesio explained. "Some properties have outdoor space, but that doesn't necessarily mean the space works for the intended operation."

Zoning and municipal requirements can further limit available options, particularly for businesses requiring vehicle parking, equipment storage, or other specialized outdoor uses. Even properties with sufficient acreage may require additional improvements or approvals before they can accommodate a prospective tenant.

Downey noted that contractors and equipment rental businesses have been among the more active users she has encountered in the market.

"These businesses need a little bit of everything," said Downey. "They need warehouse space, outdoor areas for larger equipment or materials, and the ability to keep their operations together at one location."

For properties such as 102 Commerce Way, the combination of highway accessibility, secured outdoor space, and supporting building improvements can provide an advantage in attracting users with these requirements.

 

Investment in Functionality Can Make the Difference

As investor interest in IOS properties has expanded, so have expectations surrounding the quality and functionality of available sites. Paved surfaces, security, utilities, accessibility, and supporting buildings can all influence how effectively a business can operate.

Downey emphasized that owners seeking premium rental rates must recognize the importance of providing properties that meet those operational needs.

"Owners need to understand that if they're looking for premium rents, the property needs to support those expectations," Downey said. "It's not simply a matter of having land available for outdoor storage. The infrastructure and functionality of the site matter."

The improvements undertaken by IOV at 102 Commerce Way illustrate that approach, with investments intended to strengthen the property's appeal to prospective tenants.

From an investment perspective, D'Alesio noted that vacant properties can present opportunities for buyers willing to undertake improvements, provided the acquisition cost, renovation expenses, and potential rental income support the investment.

"For the right property, an investor can come in, make the necessary improvements, and create something that's competitive in the market," D'Alesio said. "It comes down to understanding the potential of the site and what it will take to get there."

The IOS market attracts a range of buyers, from local owner-users to regional and specialized investment groups. While some seek stabilized properties with existing income, others are willing to acquire vacant sites and pursue improvements and lease-up opportunities.

"We're also seeing interest from a wider range of buyers," Downey noted. "Some are regional investors looking across multiple markets, while others are local businesses that need the property for their own operations. That creates a different mix of buyers than you might see with some other industrial properties."

With the sale completed and improvements in place, D'Alesio and Downey are now working with IOV to secure a tenant for 102 Commerce Way.

The transaction illustrates how investment in existing industrial properties can create opportunities within the IOS market, particularly where suitable sites are limited and businesses require a combination of indoor and outdoor operational space.