Industrial Outdoor Storage Gets Boost From Criterion, Columbia Pacific JV

Criterion Group and Columbia Pacific Advisors announced a joint venture to acquire  and stabilize an industrial outdoor storage (IOS) portfolio throughout the United States.

The JV formalizes an existing partnership between the two companies. 

“Not many people realize that we have already been working together for quite some time,” Shibber Khan, Principal of Criterion Group, said in prepared remarks. “Our IOS strategy started in early 2019, driving up and down the East Coast visiting sites, building broker networks, and getting deeper understanding of the asset class. The groundwork has been the key to our success.”

Criterion Group has acquired more than 41 IOS properties totaling 22 million square feet in 11 states for $360 million and this week added more.

The JV’s national portfolio of properties includes over 520 acres of land that will be utilized as industrial outdoor storage, which includes equipment yards, fleet storage, and logistics support services. With an additional 42 properties in the pipeline, the JV plans to double its portfolio in the coming year.

“Criterion was a first-mover in the IOS space and provided us the opportunity to invest early on in the life cycle,” Will Nelson, Director of Real Estate Lending at Columbia Pacific Advisors said in prepared remarks. “We are fortunate to have partnered with them over the past five years and look forward to what the future holds for the relationship.”

Interest in Industrial Outdoor Storage Growing

The JV illustrates the growing momentum in this industrial sector niche. Last month, for example, Zenith IOS and JP Morgan announced a new joint venture dedicated to building a national IOS platform.

The joint venture is expected to have closed over $125 million of acquisitions by the end of February.

Once a niche market, industrial parking and storage has transformed into an established asset class that is essential to fueling a healthy supply chain. According to a recent market report, the pandemic has increased the demand for industrial assets across the country. In the last quarter of 2021, the national vacancy rate dropped to 4.2%.