Open storage 2025

Industrial Outdoor Storage

Q1 2026 Update

How rising industrial demand, sustainability standards, and emerging technologies continue to shape the future of open storage

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Demand overview

Demand by sector

Site & size trends

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07801 666137

Daniel Francis Head of Research

07919 326085

Andrew Smith IOS Lead

Outlook for 2026

Rental and Investment trends

Site & size trends

Demand by sector

Demand overview

46% of enquiries were for ultra-urban sites below 1.5 acres.

Parking

Containers

Plant hire / contractors

Traditional uses

Other

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10%

15%

Padel courts, Manufacturers, Utilities

HGV 36% Auto 17%

53%

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Parking accounts for 53% of overall IOS demand by total acres.

Bulk, Aggregates & Minerals

4.2%

Electrification & Alternative fuel

EV charging sites

0.9%

Maintenance & Support

Pallet storage

New industrial

Recycling Sustainability uses

3.9%

Serviced yards

Sites operated by specialists IOS providers

1.3%

Construction firms

Self storage containers, Larger shipping containers

Storage plant, Machinery

Building firms, builders' merchants, scaffolding, scrap metal dealers, skip hire

The UK’s IOS market continues on its evolutionary journey. We expect to see the following key trends over the next year and beyond:

Policy stability

Sustainability

Tech adoption

Rental & investment trends

2026 Outlook

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Although growth in the rental market has softened somewhat this year, we are seeing increasing evidence of upward pressure on rental levels in some locations, for example in London’s Park Royal and Manchester. Private equity funding currently dominates the IOS investment market. This is unlikely to change in the short-medium term, although we are now seeing some family offices exploring potential opportunities in the sector. We also expect at least one major US operator to enter the UK in 2026.

Demand has been constrained in recent months by economic and policy uncertainty, but given the more certain conditions going forward, we are optimistic that demand will remain robust during 2026. Parking is the most significant use for open storage site enquiries, comprising 53% of overall demand by total acres. The container sector remains important, including both self-storage and general container storage, accounting for 10% of demand. Plant hire/contractors accounted for 6% of demand, and traditional uses accounted for 5%.

Nearly half (46%) of all enquiries were for sites of below 1.5 acres and 37% were for sites between 1.5 and 2.9 acres. Recycling and sustainability uses tend to seek larger sizes, which averaged 3.8 acres in our analysis. Fleet parking / 3PLs (HGV parking) required an average of 2.4 acres, whilst most other uses required an average of around 1.5 acres. Sites required for containers and traditional uses were a little smaller on average at circa 1 acre.

Evolving IOS rent reviews

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IOS rents in many locations have jumped significantly in recent years, with a knock-on effect at lease events where the initial passing rent has been eclipsed by the market. For leases granted in 2020/2021 with a five yearly (or more regular) open market review mechanism, now is the time for landlords to capitalise on this market growth. Landlords are typically pushing for rent reviews every three years, at the higher of open market rent or CPI linked. There is now serious investor appetite for IOS sites, and early entrants are seeing their beliefs vindicated at reviews and renewals for sites which have historically passed off very low rents. Going forward there is even more potential to capitalise on market growth for those landlords looking to challenge the traditional views and push rents.

Evolving IOS rent reviews

IOS investment transactions well in excess of £250 million were completed in 2025, compared with £150 million in 2024.

Lease events

Positive sentiment for rental growth at rent reviews / lease renewals

Serviced yards

More 'serviced yards’ operated by specialist IOS providers

Market polarisation

Some occupier groups increasingly prepared to pay a premium

Security of tenure

Some occupiers servicing long-term contracts prepared to pay a premium for longer-term security of tenure

Relocation trends

As IOS rents increase some occupiers will be willing to relocate further afield to secure lower rents

European expansion

Established UK players are starting to see traction in Europe

Investment outlook

The UK IOS market will continue to see new entrants, notably established US portfolio operators, with continued strong demand for quality assets

Infrastructure demand

Demand from infrastructure firms and utilities for larger oven-ready sites, with some prepared to pay a premium

Owner occupier growth

More occupiers purchasing IOS sites as a ‘defensive play’ to gain long-term control

Planning challenges

Obtaining planning consent for IOS sites will remain a key challenge

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