Maximizing the Value of Industrial Outdoor Storage: 6 Lessons from ARCO/Murray’s Expertise

Industrial Outdoor Storage (IOS) is rapidly gaining traction as an acceptable and legitimate asset class for capital.   With increased demand for storage of trailers and vehicles, materials and equipment, coupled with the proven “stickiness” of tenancies, the sector offers a compelling investment opportunity for capital looking to diversify their portfolios, mainly due to the restricted zoning and limited options within this sub-asset profile within the broader industrial zoning classification.

Whether for trailer and/or container storage, truck parking, freight-forwarding, cross-docking, fleet maintenance, and repair, or simply for industrial uses requiring surface area for exposed material storage around a building, IOS has a multitude of applicable uses – all relying on this coveted zoning classification.

The decade-long surge of institutional capital into industrial investment has triggered this frenzy into IOS. Seen as less capital-intensive than investing in bulk industrial distribution assets, family offices, and private equity, significant funds have entered this asset classification for perceived higher returns and geographic diversification. IOS assets are present and critical in every market.  At ARCO/Murray National Construction Company (ARCO/Murray), a North American Design-Build general contractor and the #1 Warehouse and Distribution Builder (2024 ENR), we have successfully completed numerous IOS projects across the U.S. and currently have multiple IOS projects under construction. Through our experience designing and constructing these unique facilities, we’ve collected six critical lessons learned that can help stakeholders optimize these assets for functionality and maximum return on investment.

1. Engage Early in Preconstruction to Tackle Zoning and Site Requirement Challenges

One of the most important lessons learned in developing IOS facilities is the value of early and proactive preconstruction planning. Due to the relatively niche product type in many regions, zoning and permitting processes can often be unpredictable, leading to confusion and/or triggering unnecessary approvals due to improper project descriptions. This makes it essential to engage city authorities early in the project lifecycle to build relationships, clarify scopes, and address unique site requirements.

“A proactive approach to preconstruction isn’t just beneficial—it’s crucial,” explains Paul Wagner, Vice President of the Austin operations at ARCO/Murray. “A thorough understanding and review of local zoning codes, particularly site adjacencies, is critical. This involves identifying requirements for screening, fencing, and walls and implementing effective landscape buffers within community expectations.” Building relationships can help anticipate and resolve potential issues with stormwater management, security requirements, or site access points before they become roadblocks. This allows us to make informed decisions on site layout, drainage solutions, and other design elements, ultimately streamlining approvals and avoiding costly rework.

2. Optimize Site Layout and Design for Maximum Flexibility and Functionality

Site layout and design are key to achieving operational efficiency and long-term adaptability when developing IOS facilities. Early decisions about truck circulation patterns, parking angles, stall dimensions, or accommodating multiple tenants can impact the site’s usability. Thoughtful planning ensures that trucks can move through the site without congestion while making the most of the available space for storage or parking. Additionally, adapting for various trailer sizes and planning for future expansions or reconfigurations can ensure the site remains flexible to changing market demands.

One key insight ARCO has gathered from experience is that using a maximum stall dimension of 70’ provides versatility for larger trucks and trailers while allowing smaller users to operate efficiently. Intermingling 70’ stalls with a ratio of 55’ stalls or smaller helps to diversify the site, making it more appealing to various tenants. These approaches balance the needs of various users while maintaining efficient drive aisle dimensions, allowing developers to maximize the value of their investment.

3. Implement Effective Stormwater Management Strategies Early to Reduce Costs

Stormwater management is a crucial component of IOS site development, as failing to address it early in the design phase can lead to increased costs and flooding issues later. Strategically planning drainage systems, surface grading, and water management solutions help mitigate runoff, prevent flooding, and ensure the facility remains operational even in adverse weather conditions.

“Our Civil Engineering team at AME evaluates all possibilities for designing the right stormwater management solution. Where possible, we sheet flow our stormwater runoff to reduce the reliance on costly underground storm sewer systems,” explains Ryan Feeney, Vice President of Civil Engineering, AME, a trusted engineering partner of ARCO/Murray. Considering the natural site topography and integrating sustainable water management solutions from the outset can help reduce costs and ensure the site’s usability during and after rainfall events.

4. Strategically Sequence Construction Activities to Minimize Delays and Maximize Efficiency

In contrast to traditional indoor facilities, IOS sites do not have a “dried-in” phase – a period in construction when the facility is waterproof enough to install weather-sensitive materials. Proper scheduling of activities, such as drainage installation, concrete pours, and infrastructure setups, can prevent delays and ensure all teams can access the site. Overlapping certain activities and coordinating sub-trades efficiently helps reduce downtime, maintain momentum, and deliver the project on schedule and within budget. Early planning and communication among project teams are essential to keep everything running smoothly.

5. Prioritize Security and Access Control to Enhance Site Safety

Prioritizing security and access control is crucial when creating a safe and functional IOS facility. Effective planning of site security features, such as perimeter fencing, guard shacks, and automated gate systems, ensures protection from unauthorized access and operational disruptions. Optimizing truck queuing areas and circulation paths is essential for preventing traffic congestion and ensuring smooth, safe movement throughout the site.

Designing for security and access control early in the planning process helps reduce potential risks and creates a more effective site layout. This includes carefully planning the entry and exit points to avoid blocks and ensure drivers can navigate the facility without unnecessary delays or hazards.

6. Future-Proof Your Site with Flexible Infrastructure for Emerging Trends

As technology and market demands evolve, building IOS sites with flexibility and scalability is essential. Future-proofing sites for emerging market needs, such as electric vehicle (EV) infrastructure, can increase the site’s value over time. Installing future conduits or providing spare panel capacity during the initial construction phase can easily accommodate future technological upgrades without major disruptions and minimize costly retrofit costs.

“Futureproofing isn’t just about anticipating what’s next; it’s about creating infrastructure that allows for seamless upgrades when market demands shift,” explains Buster Sheridan, Vice President of the Miami operations at ARCO/Murray. “By incorporating scalable solutions, we can ensure our sites remain competitive for years to come, positioning them to meet diverse tenant needs and accommodate technological advances with minimal changes.” This forward-thinking approach makes the site more attractive to tenants and increases its long-term profitability.

At ARCO, we understand that every IOS project is unique. Our design-build approach allows us to collaborate closely with owners and developers to create facilities that maximize functionality, efficiency, and long-term value. IOS is rapidly becoming a vital asset class in the industrial real estate market as logistics and e-commerce drive demand. IOS facilities provide flexible, scalable solutions for a wide range of storage and operational needs.

By applying these lessons learned in preconstruction, site design, stormwater management, security, and futureproofing, developers, end users, and investors can capitalize on the growing demand for this unique property type.

To learn more about our design-build capabilities and how we can assist you on your next project, visit us at https://www.arcomurray.com/

About ARCO/Murray

ARCO/Murray is a single-source national design and construction firm specializing in commercial construction and real estate needs for Fortune 500 companies and individual businesses. From planning to execution, ARCO/Murray’s expert team uses the most advanced design-build methodology to deliver the very best client experience. 

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