Press Release|CMBS
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KBRA Releases Research – Industrial Real Estate: Shifting Fundamentals and the Rise of Industrial Outdoor Storage

16 Sep 2026   |   New York

Contacts

KBRA releases a report that discusses the shifting fundamental trends of industrial real estate that are continuing to shape and support the overall sector, as well as spotlights Industrial Outdoor Storage (IOS), which has emerged as one of the fastest-growing specialized sub-property types, attracting increasing institutional investment and trade organization recognition.

Key Takeaways

  • The outlook for industrial real estate remains healthy despite near-term headwinds, supported by continued growth in e-commerce, supply chain modernization, manufacturing, and infrastructure investment.
  • Rapid post-pandemic rent growth left many industrial legacy leases 25% or more below market, providing substantial upside as leases expired and reset to market. However, as this gap has narrowed, the remaining potential for rent growth has moderated.
  • The sector’s favorable operating fundamentals continue to attract lender interest and increased commercial mortgage financing activity. Year-to-date through July, industrial collateral represented 19.3% of total commercial mortgage-backed securities (CMBS) issuance, or $14.3 billion, compared with 14% ($9.1 billion) during the same period in 2025.
  • IOS rents averaged $13.14 per square foot (psf) in Q4 2025—approximately 18% above traditional industrial rents—while vacancy remained at just 2.5%, compared with 6.7% for traditional industrial properties.
  • Institutional investors now account for an estimated 35%-45% of IOS acquisitions, up from approximately 25%-30% four years ago.
  • While institutional interest has grown, underwriting scrutiny is increasing, particularly around zoning, entitlement risk, and environmental considerations.
  • Institutional debt capital markets activity in IOS is increasing, including single-borrower CMBS and private credit transactions.

Click here to view the report.

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About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1016988