Industrial outdoor storage (IOS) in Elgin, Illinois is experiencing a surge in demand and rent growth due to the rapid buildout of AI and quantum infrastructure. Sites are essential for storing construction equipment, vehicles, and supplies. Big investors like Zenith IOS and Blackstone are pouring money into the sector, which has outperformed the warehouse market in rent growth and vacancy rates. Alterra IOS just closed a $150 million loan facility with Blue Owl Capital to support acquisitions for their Venture III fund. While the fundamentals are strong, risks include zoning constraints and concerns about an overheated data center market.

Read more at CNBC: Alterra IOS CEO on the outperforming real estate sector hiding in plain sight