Industrial outdoor storage continues to draw interest from investors as the niche product evolves toward the mainstream and rents rise.
Yardi Matrix opened its September 2025 National Industrial Report with an overview on IOS and its coming of age.
In New Jersey, these outdoor storage sites continue to trade, particularly in accessible areas. Recently, CBRE and NAI James E. Hanson both closed deals in the space.
With limited supply, and persistent demand, rents have grown significantly in the sector. That’s bolstered by barriers to developing more of these properties, such as lack of space or local appetite. Referencing data from Newmark, the Yardi report noted the disconnect has pushed rents up 123% since 2020.
In August, the average national rent was $8.66, according to Yardi Matrix; a more than 6% change from a year ago.
Los Angeles posted the highest rate ($15.42) and Memphis the lowest ($4.25). New Jersey came in above the average U.S. mean at $11.95. The figure represents a 7.6% change over 12 months.
CBRE
On Oct. 8, CBRE announced representing private investment firm Genesis in its acquisition of an industrial property with 4.8 usable acres and abundant outdoor storage.
Located at 173 Amboy Road in Morganville, an unincorporated area of Marlboro in Monmouth County, the site sold for $6.9 million in an off-market transaction. It also features a 21,000-square-foot functional facility.
A CBRE team of Associate Liam McGregor, First Vice President Mark Silverman, Vice Chair Brian Fiumara and Executive Vice President Elli Klapper represented the buyer. Genesis focuses on the acquisition of value-add industrial assets, according to CBRE. The seller was not disclosed.
Silverman called the addition a “tremendous opportunity” for Genesis to build its growing regional portfolio.
Built in 1988, 173 Amboy Road features:
- 22-foot clear ceilings
- Warehouse and storage space
- Three drive-in doors
- Nearly fully paved outdoor storage lot
- Immediate access to Routes 9 and 18
“The property at 173 Amboy Road provides a great alternative for occupiers that don’t require direct access to the New Jersey Turnpike or I-287 but still want to benefit from the growing industrial market of Central Jersey,” commented McGregor.
NAI James E. Hanson
In Kenilworth, NAI James E. Hanson brokered the $3.3 million sale of a 1.28-acre IOS property.
Featuring three newly renovated buildings totaling 17,040 square feet, 400-450 Swenson Drive offers a strategic location near Garden State Parkway as well as Interstates 78 and 95.
Vice Presidents Russell Verducci and Eric Demmers and Associate Colin Goldstein represented the seller, Fairfield Products Corp. The buyer was not disclosed.
“We’re continuing to see strong demand from both investors and users for well-located IOS properties in the northern New Jersey market like 400-450 Swenson Drive,” said Verducci.
