Recent studies show significant pressure on the nation's commercial parking shortage due to the thriving retail sector, with online retail sales surging 85 percent. This surge has led to a multiplication of delivery vehicles needing parking spaces, resulting in congestion and record financial losses of $95 billion in 2021, driving up demand for industrial outdoor storage (IOS) facilities. The West faces the largest challenge, with limited truck parking availability leading to expensive pricing for IOS sales, while the Northeast struggles with lopsided truck-to-parking spot ratios. Seeking cost-effective solutions, many IOS facilities are being repurposed into multi-faceted service properties to meet the demand for consistent parking, reducing tenants' downtime and offering lower maintenance costs compared to traditional warehouses. Despite the scarcity of new IOS properties, opportunistic investors and industrial property managers are repurposing dirt lots into sophisticated commercial parking and storage solutions, driving an evolution in the market and prompting larger firms to explore ripe opportunities.
