Q&A WITH IOS VALUATION PRO: VYTAS NORUSIS, VIA TRUCK PARKING MEDIA

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Industrial Outdoor Storage (IOS) has long operated in the shadows of commercial real estate—but not anymore. Once seen as a placeholder land use, IOS is now attracting serious attention from institutional investors and transforming into a high-demand, high-value asset class. 

To unpack what’s driving this shift, Jose Lorido sat down with Vytas Norusis, Senior Valuation Services Director at Colliers, for a wide-ranging conversation on the state of the IOS market—from investment strategy shifts to the financing challenges still holding some deals back.

Here are the standout insights from our conversation, followed by a summary of the key trends shaping the space.

🔑 Golden Insights from the Interview

1. IOS Has Gone Institutional
“Ten years ago, these deals were hard to finance, hard to appraise, and mostly ignored,” Vytas told us. Today? Even Blackstone is in the game. With a $200M play in IOS lending, it's clear that big players now recognize the revenue potential of truck parking and storage.

2. Valuation & Financing Challenges Still Persist
Lenders—especially smaller ones—are still catching up. Many lean heavily on business financials rather than appraisals, which can be a disconnect when properties near major freight hubs like O’Hare have 5x'd in value over a few years.

3. Sale-Leaseback is a Strategic Bridge
As owner-operators retire, short-term sale-leasebacks offer a win-win: sellers get capital, and buyers maintain revenue streams while planning redevelopment. “It gives investors breathing room,” says Vytas.

4. Managed Parking is Gaining Traction
Once avoided due to operational complexity, managed truck parking is now viewed as a viable interim strategy. New technology and contract labor help reduce risk while keeping sites cash-flowing.

5. Regional Demand Varies Sharply
Markets like Dallas-Fort Worth are building full-service facilities with lounges and Wi-Fi. In contrast, South Florida’s high demand means even basic gravel lots stay full, with one operator charging 40% more than a nearby competitor—yet remaining at full occupancy.

🛠 IOS as a Real Investment Class: The Backstory

Vytas’s first brush with IOS came nearly a decade ago, appraising a container yard near an intermodal hub. At the time, “no one wanted to touch these properties,” he recalls. But over time, he noticed a recurring pattern: low development costs + zoning flexibility + strategic location = outsized rental income.

By 2019, he knew something was brewing. “Three acres of fenced land in the stockyards generated impressive monthly income,” he said. From there, the IOS surge began, with small-time operators scaling up and institutional players like Blackstone validating the sector’s staying power.

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🏗 The Financing Conundrum

IOS may be booming, but financing hasn’t fully caught up. Many deals are still funded through private equity or cash because traditional lenders struggle with the asset class's opacity.

“Appraising these deals was tough because there were so few comps. We had to lean on income and developer insights,” said Vytas. Even now, education is key: smaller lenders often can’t justify new valuations without market data, while institutional capital with higher risk tolerance moves more nimbly.

🔄 Short-Term Leasebacks: A Transition Playbook

As more trucking operators exit the industry, short-term leasebacks have emerged as a preferred exit. “It’s cleaner than an outright sale,” Vytas explained. Sellers can wind down operations, and investors keep sites monetized while preparing for long-term use. With infrastructure and permitting delays common (nine months to source switchgear, anyone?), these deals are an attractive hedge.

🚚 Managed Parking: Operational Revenue, Long-Term Vision

Managed parking is no longer a fringe idea. In fact, it's becoming a bridge strategy for investors aiming to generate revenue while marketing sites for longer-term leases.

“We look at revenue per truck per month the way hotels use RevPAR,” Vytas said. It’s not without challenges—revenue-sharing adds complexity—but for well-located sites in markets with high demand, the upside is there.

Jake from our team added: “Truck parking rates haven’t hit a ceiling. In fragmented markets, operators with better amenities can still raise rates and stay full.”

🌍 Regional Trends: One Size Doesn’t Fit All

IOS trends vary drastically by region:

• Dallas-Fort Worth is a hub for full-service facilities catering to long-haul drivers needing rest and amenities. Rates range from $150–$200 per truck/trailer.

• South Florida is so supply-constrained that even fenced gravel lots stay full. Zoning is tight, and occupancy is consistently high despite minimal infrastructure.

• Coastal markets like Newark and Long Beach face extreme land constraints—with some estimating 11+ drivers per space.

While public data exists for major truck stops, privately run IOS sites remain opaque—creating both risk and opportunity.

💡 Amenities Matter

As the competition for drivers intensifies, amenities have become a key differentiator. “Without lounges, showers, and even entertainment options, drivers won’t stick around,” Vytas emphasized.

However, not all tenants want high-touch services. Short-term operators often prefer low-management setups. The best investment strategy? Tailor site improvements based on tenant behavior and actual usage patterns.

Gate access is the driver’s first impression of your facility:

📈 The Road Ahead

With supply-demand imbalances, evolving lease models, and major capital flooding into the space, the IOS market is in rapid transformation. Institutional investors are adapting. Lenders are learning. And operators are optimizing.

“This space is evolving fast,” Vytas concluded. “We’re seeing everything from mom-and-pop portfolios to the largest truck stop acquisitions—and it’s only just beginning.”

🎤 Interview conducted by Jose Lorido, Truck Parking Media
Guest: Vytas Norusis, Senior Valuation Services Director, Colliers
Originally recorded for the Rig Hut video series on April 16, 2025