There is a shortage of high quality well serviced industrial open storage (IOS) land. Planning constraints, competing land uses, and the lack of new IOS specific development have created a supply demand imbalance. Even sites with basic essentials – such as hardstanding, drainage, perimeter security, and utilities – are increasingly rare.
In some locations, whisper it quietly, but IOS values are now edging close to – or even surpassing – traditional industrial development values due to this combination of scarcity, changing operational requirement and heightened build cost inflation This dynamic has not gone unnoticed by investors. Over recent years, several real estate funds, and private equity platforms have launched dedicated IOS vehicles, specifically structured to acquire land, create scalable platforms, or support operators in rolling out branded networks.
The Thames Valley has become one of the most competitive regions for IOS demand. One major driver is the rising cost of traditional industrial units: as warehouse and unit rents continue climbing, more occupiers are realising they can operate more cost effectively and efficiently from open storage land. This shift is especially relevant for businesses with operations that are or can be outside focused, such as fleet operators, materials suppliers, and builders’ merchants
A particularly strong growth area is vehicle fleet storage, especially as operators electrify. The industry’s push toward net‑zero commitments means that EV charging infrastructure is increasingly non‑negotiable, further intensifying demand for sites with reliable three phase power and capacity for grid upgrades. Another trend is for lorry to van hubs where a fast swap doesn’t require internal storage, or it would negatively impact the process.
Across the Thames Valley, IOS rents vary dramatically depending on specification, location, and site quality. At the broadest level, rents can range from £1.50 per sq ft for low specification, irregular, or peripheral plots to more than £10 per sq ft for ultra prime, fully surfaced, secure sites benefiting from strong motorway connectivity and state of the art security. These premiums are most pronounced where sites feature:
Well managed multi‑occupier estates consistently outperform fragmented one off plots, both in rental performance and investor interest. Historically occupiers in this sub sector wanted short flexible leases but partly driven by scarcity of sites and the need to secure longer term solutions occupiers are now more commonly seeking longer leases akin to those usual signed in an industrial unit.
Added by
Neil Seager
BSc (Hons) MRICS