Why IOS Sites Need a Scoring System
Industrial outdoor storage is a data-sparse asset class. Unlike office or multifamily, there are no standardized metrics for evaluating IOS sites. Brokers and investors have historically relied on gut instinct, local knowledge, and a handful of rules of thumb — is it big enough? Is it zoned right? Is it near a highway?
This informal approach produces inconsistent results. Two experienced IOS brokers evaluating the same site might reach opposite conclusions. New entrants to the market have no framework at all. And even experienced professionals struggle to compare sites across different markets or submarkets using anything resembling objective criteria.
CRE Intel's IOS scoring algorithm solves this problem. Every site receives a score from 0 to 100 based on five quantifiable dimensions. The score doesn't replace broker judgment — it informs and structures it, ensuring that nothing obvious is missed and that sites can be compared objectively.
Dimension 1: Land Use Match (30 Points)
The most important factor in IOS site scoring is whether the land use data suggests the site is compatible with outdoor storage operations. CRE Intel pulls land use classifications from OpenStreetMap and cross-references them against a taxonomy of IOS-compatible uses.
Sites classified as industrial, logistics, or transportation score highest in this dimension — up to 30 points. Commercial and mixed-use sites score in the middle range. Residential, parkland, or protected classifications score near zero.
Several OSM tags receive full marks in the land use dimension:
- landuse=industrial
- landuse=commercial (with industrial adjacency)
- amenity=parking (for large lots)
- man_made=storage_tank, depot, works
- industrial=yard, logistics, storage
Sites tagged with uses that are fundamentally incompatible with IOS — residential, recreational, agricultural — receive low scores in this dimension, which typically prevents them from reaching a total score worth investigating.
Dimension 2: Acreage Suitability (25 Points)
IOS operations require meaningful land area. A trucking company needs room to park dozens of trailers. A container operator needs to stack and maneuver shipping containers. A heavy equipment contractor needs space for cranes, excavators, and materials storage. Sites that are too small — under half an acre — have limited IOS utility.
CRE Intel's acreage scoring rewards larger sites:
- Under 0.25 acres: 0-5 points
- 0.25 to 1 acre: 5-12 points
- 1 to 3 acres: 12-20 points
- 3 to 5 acres: 20-23 points
- 5+ acres: 23-25 points
The sweet spot for most IOS deals is 2-10 acres. Sites in this range attract the widest range of tenants and generate the most competitive rent dynamics. Sites above 20 acres begin to attract a more specialized tenant universe — intermodal operators, major fleet operators, industrial manufacturers with large outdoor components.
Dimension 3: IOS Name Signals (20 Points)
OpenStreetMap and other geographic data sources often include facility names that directly signal IOS use. A site named "Allied Trucking Yard" or "Houston Container Storage" is almost certainly an existing or former IOS operation, even if the formal land use classification is generic.
CRE Intel's name signal engine scans facility names for keywords associated with IOS operations:
- High-signal terms (18-20 points): "truck yard," "container yard," "equipment yard," "storage yard," "trailer depot," "intermodal"
- Medium-signal terms (10-17 points): "logistics," "fleet," "depot," "yard," "storage," "terminal"
- Low-signal terms (1-9 points): "industrial," "warehouse" (suggests building-heavy use), "distribution"
- No IOS name signals: 0 points in this dimension (score based on other dimensions)
IOS name signals are particularly valuable for identifying existing IOS operations — sites that are already functioning as outdoor storage, potentially available for acquisition or lease negotiation.
Dimension 4: Highway Proximity (15 Points)
IOS tenants are logistics operators. Their business depends on moving trucks, equipment, and containers efficiently. Highway access is not optional — it's the primary operational requirement for most IOS tenants. A 10-acre yard that's 5 miles from the nearest interstate is worth a fraction of a 3-acre yard with a direct interchange exit.
CRE Intel measures proximity to:
- Interstate highway interchanges (highest value)
- US highway corridors (high value)
- State and major arterial routes (moderate value)
Scoring:
- Within 0.25 miles of an interstate interchange: 15 points
- 0.25 to 0.5 miles: 12 points
- 0.5 to 1 mile: 9 points
- 1 to 2 miles: 5 points
- Over 2 miles: 0-3 points
Highway proximity is the single biggest determinant of IOS rent. Sites within a quarter mile of an interchange command a significant premium over otherwise comparable sites further from access. In markets like Dallas and Houston, where the industrial corridors are organized around major interstates, this dimension is particularly predictive.
Dimension 5: Rail Proximity (10 Points)
Rail proximity is a bonus dimension that rewards sites near intermodal terminals, rail yards, or active rail lines. Not every IOS tenant needs rail access — most trucking and equipment storage operators don't. But for container operators, intermodal logistics providers, and heavy industrial tenants, rail access is a significant differentiator.
Scoring:
- Within 0.5 miles of an intermodal terminal: 10 points
- Within 0.5 miles of active rail line: 7 points
- Within 1 mile of rail infrastructure: 4 points
- No proximate rail: 0 points
Bonus and Penalty Factors
Beyond the five primary dimensions, CRE Intel applies a set of bonus and penalty adjustments that reflect market-specific factors:
- Flood zone penalty — sites in FEMA Special Flood Hazard Areas (100-year floodplain) receive a 10-15 point penalty. IOS operations are often disrupted by flooding and tenants discount rent accordingly.
- High crime penalty — sites in census tracts with significantly elevated crime indices receive a 5-10 point penalty. IOS operators value site security highly.
- EPA environmental flag — sites near Superfund sites or with ECHO compliance violations receive a 5-10 point penalty for potential remediation liability.
- Opportunity Zone bonus — sites within designated Opportunity Zones receive a 3-5 point bonus, reflecting tax incentives available to investors.
- Port proximity bonus — sites within 5 miles of a major port receive a 3-5 point bonus, reflecting premium container storage demand.
How to Interpret IOS Scores
The 0-100 IOS score gives brokers and investors a clear, comparable view of site quality:
- 80-100: Exceptional IOS site. Strong land use match, adequate acreage, excellent highway access, likely existing or former IOS operation. Prioritize immediately.
- 60-79: Good IOS site. Most fundamentals are strong; one or two dimensions may be moderate. Worth detailed investigation.
- 40-59: Potential IOS site. Significant strengths in some dimensions, weaknesses in others. Requires more due diligence before pursuing.
- 20-39: Marginal IOS site. May have one strong characteristic (e.g., excellent highway access) but insufficient in other dimensions. Low priority.
- 0-19: Poor IOS suitability. Likely not an IOS opportunity given current land use and location characteristics.
Scores should be read in context. A 75-scoring site in a market with almost no available IOS land (like Northern New Jersey) may be worth pursuing aggressively. The same score in a market with abundant supply may not justify the same urgency.
The Score Is the Starting Point, Not the End Point
CRE Intel's IOS score is a powerful filter and prioritization tool — but it's not a substitute for ground-truth due diligence. After identifying high-scoring sites, brokers and investors should verify zoning in detail, inspect the site physically, research the ownership structure, and assess the specific tenant demand in that submarket.
The score tells you where to focus. The deal is still made by humans who understand the market, the tenant, and the operator behind the property.
Ready to score IOS sites in your target market? Join the CRE Intel waitlist. Or read more about how to analyze an IOS deal in 30 minutes.