Newmark Launches Industrial Outdoor Storage Practice Across North America as Sector Rents Outpace Warehouse
Newmark announced Oct. 19 the launch of a dedicated Industrial Outdoor Storage (IOS) specialty practice, a group of advisors providing advisory, leasing, capital markets and occupier solutions across North America. The new practice targets what the firm describes as one of commercial real estate's fastest-evolving property sectors, bringing together specialists who serve owners and occupiers of truck terminals, fleet parking facilities, storage yards, industrial service facilities and related outdoor logistics assets.
The move formalizes Newmark's focus on a niche of industrial real estate that has drawn growing institutional attention, with rent growth outpacing traditional warehouse real estate and vacancy running tighter than the broader industrial market.
Newmark's IOS Practice: Structure and Services
The group's services include integrated landlord and tenant representation. It will also work with Newmark's Industrial & Logistics Capital Markets business on investment sales, debt and financing, M&A advisory and sale-leaseback transactions, the firm said.
The practice includes broker-advisors based throughout the U.S. and Canada. It is led by Executive Managing Directors Adam Petrillo and Jerry Hopkins, Senior Managing Director Reid Halverson and Managing Directors Steve Korfiatis, Mike Viehmann and Cam Warren.
Newmark said its IOS specialists have advised on a range of leasing and capital markets assignments across major logistics markets nationwide. One example cited by the firm is the sale-leaseback of a 15-property, 1.53 million-square-foot national IOS portfolio.
Executives Cite Evolution of Outdoor Storage Sector
"Industrial outdoor storage has evolved from a fragmented real estate niche into a critical component of modern supply chains and industrial operations," said Jack Fraker, President, Global Head of Industrial & Logistics, Capital Markets. "As IOS has become increasingly important to both occupiers and investors, demand for well-located assets has continued to accelerate, driving rent growth that has significantly outpaced traditional bulk warehouse space over the past decade."
Viehmann said the facilities serve a broad set of users. "Whether supporting transportation fleets, construction and infrastructure companies, equipment operators or logistics providers, industrial outdoor storage facilities play an essential role in keeping goods and services moving," he said.
Halverson said the dedicated business offers "deeper market knowledge, stronger collaboration and broader access to opportunities nationwide." He added: "By connecting professionals across key markets, we can provide clients with insights informed by leasing, ownership and investment activity throughout the sector."
Stephen Bailey, Vice Chairman and Co-Head of Texas Capital Markets, said IOS "has become a meaningful part of our capital markets business, and this practice allows us to integrate that work with agency leasing, tenant representation, owner-occupier solutions and corporate M&A advisory nationwide, giving owners, investors and occupiers targeting the sector a comprehensive offering."
Industrial Real Estate Data: Rents and Vacancy
According to Newmark's Lots to Gain research report, IOS has emerged as one of the strongest-performing segments within industrial real estate. Between 2020 and 2025, IOS rents increased 123%, more than double the growth recorded by bulk warehouse properties over the same period. Newmark's midyear 2026 vacancy measures put IOS at 5.8%, the tightest niche sector in the industrial market, compared with 7.4% for the overall industrial market.
Other market measures point to similarly tight conditions. CBRE data placed national IOS vacancy at 3.6% in the second quarter of 2026, versus 6.5% for industrial overall, with IOS rents at $11.07 per square foot per month, up 1.6% year over year. KBRA reported fourth-quarter 2025 IOS rents of $13.14 per square foot, roughly 18% above traditional industrial rents, with IOS vacancy at 2.5% compared with 6.7% for traditional industrial properties. The differing vacancy figures likely reflect variations in geography, asset quality and methodology; the consistent finding is that paved, secured and well-located IOS sites are substantially tighter than conventional industrial inventory.
The sector encompasses an estimated 1.4 million acres across the United States, but the supply of well-located sites remains constrained by zoning and entitlement challenges, Newmark said. That scarcity has fueled investor demand and accelerated IOS' evolution into an increasingly institutionalized asset class.
Investment and Valuation Context
Institutional-quality IOS assets in primary markets were trading at approximately 6.00% to 6.75% cap rates in 2026, while secondary-market assets traded around 6.75% to 7.75%. Primary-market IOS rents were estimated at roughly $5,000 to $15,000 per acre per month, with Dallas-Fort Worth near the upper end of that range. Secondary-market rents generally ranged from $3,000 to $6,000 per acre per month.
Rent growth was estimated at 8% to 10% in 2024 and 7% to 9% in 2025, with a projected 6% to 8% in 2026, implying an approximate three-year compound annual growth rate of 8% to 9%.
IOS properties serve truck terminals, fleet parking, equipment storage, construction companies, infrastructure contractors and logistics operators. Value is driven heavily by location, access, yard configuration, paving, security, zoning and proximity to highways, ports and industrial nodes. The sector's ownership base is fragmented, which creates an opportunity for brokerage firms to aggregate leasing intelligence, identify off-market supply and package portfolios for institutional buyers or sale-leaseback transactions.
Newmark's Financial Backdrop
Newmark reported second-quarter 2026 revenue of $888.4 million, up 17.0% from $759.1 million a year earlier. Revenue for the first six months reached $1.7349 billion, an increase of 21.8% from the comparable 2025 period. Capital Markets revenue recorded 11 consecutive quarters of double-digit year-over-year growth through June 30, 2026. In the first quarter, total revenue rose 27.2% to $846.5 million, and Capital Markets revenue increased 45.5% to $252.5 million.
Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisor and service provider to institutional investors, owners, global corporations, other occupiers and lenders. For the twelve months ended June 30, 2026, the firm generated revenues of more than $3.6 billion. As of that date, Newmark and its business partners together operated from over 195 offices with more than 10,000 professionals across four continents.
Market Implications
The launch comes as owners and occupiers navigate a market in which land scarcity, regulatory constraints and logistics demand are central to valuation. Newmark enters a field where specialized IOS advisory platforms and industrial brokerage groups compete for mandates from private-equity firms, infrastructure operators, transportation companies and institutional investors. By linking IOS specialists across the U.S. and Canada with its Industrial & Logistics Capital Markets business, Newmark is positioning the group to pursue assignments that combine leasing, financing, sale-leaseback and corporate advisory work.
Sources
Newmark press release, "Newmark Launches Industrial Outdoor Storage Practice, Expanding Capabilities Across North America," Oct. 19, 2026: https://www.nmrk.com/insights/press-releases/newmark-launches-industrial-outdoor-storage-practice-expanding-capabilities-across-north-america