Industrial Outdoor Storage Key Takeaways from NAIOS Atlanta

By Vytas Norusis, MAI, Executive Vice President

Industrial Outdoor Storage continues to gain traction. The conversations at the National Association of Industrial Outdoor Storage (NAIOS) Atlanta Conference made it clear that the sector is moving into a more mature and increasingly competitive phase.

Attendance tells part of the story. The conference grew from roughly 450 attendees in 2025 to more than 700 in 2026, reflecting the level of interest and capital flowing into the space. But what stood out more was how investors and operators are approaching IOS today.

A More Nuanced Investment Landscape

As IOS evolves, so does investment strategy.

Understanding your counterparty matters more than ever. Public and private groups often come to the table with different priorities. Some are focused on occupancy, others on rent growth, and many are balancing flexibility in ways that go beyond price alone.

Underwriting is also getting more thoughtful. Tenant productivity is becoming a central focus. The more functional and efficient a site is for the tenant, the more it supports long term rent growth and performance.

Operational Discipline Is Essential

IOS is not a passive asset class.

Success comes from staying engaged at both the asset and portfolio level. Owners are continuously looking for ways to improve operations, enhance usability, and get more out of each site. More than ever, returns are driven by how well you execute after the deal closes.

Demand Drivers Remain Strong

Infrastructure continues to be a major driver of demand.

Data centers, rail expansion, and broader logistics investment are all supporting industrial growth, which in turn supports IOS. These trends are not new, but they continue to reinforce the sector.

We are also seeing IOS follow a path similar to other asset classes. Self-storage is a good example. It helped establish a playbook around operations, scalability, and institutional adoption that is now showing up in IOS.

Local Dynamics Still Matter

Even with growing institutional interest, IOS is still very much a local business.

Zoning, entitlement, and municipal relationships can make or break a deal. Getting in front of those conversations early goes a long way in avoiding issues later and improving certainty of execution.

Competing in a Crowded Field

There is more capital in the space, and that is changing how deals get done.

Price is still important, but it is not the only factor. Sellers are paying close attention to certainty of close, track record, and whether a buyer can execute consistently. In a crowded bid process, those factors often carry real weight.

Still Early, but Moving Quickly

Most people at the conference described IOS as being in the third inning. There is still runway ahead, but the pace of change is picking up.

There is a lot of optimism heading into the second half of 2026. Larger deal sizes are coming to market, giving institutional buyers a clearer entry point. At the same time, there is an understanding that discipline still matters. The opportunity is there, but so is the need to execute carefully.

Beyond the Anchor: How Experiential Retail is Rewriting the Rules

By: Joe Miller, MAI, MRICS, National Practice Lead for Retail Valuation
November 4, 2025

In an era where traditional retail anchors are losing their gravitational pull, a new wave of lifestyle-driven concepts is stepping into the spotlight. Shuffleboard clubs, pickleball venues, and food halls tucked inside casinos are no longer fringe experiments. They’re becoming the heartbeat of retail revitalization. Casinos themselves are increasingly serving as multi-dimensional anchors, blending gaming, dining, shopping, and entertainment experiences that draw diverse audiences

These concepts are more than just novelties. They represent a strategic pivot toward experiential retail, a segment that continues to show resilience even as regional malls face mounting pressure from store closures and shifting consumer habits. While grocery-anchored centers and long-term net lease properties remain investor favorites, it's the unexpected rise of entertainment-infused retail that’s capturing attention in both media and client conversations.

Why They Work: Foot Traffic Without the Spend

One of the most compelling aspects of these new retail formats is their ability to drive foot traffic and increase dwell time. Shuffleboard clubs and pickleball courts offer social engagement and physical activity, while casinos drive consistent traffic and extend dwell time, creating a halo effect for adjacent tenants. These venues are targeted destinations, drawing visitors who may not be there to shop, but who linger, explore, and share their experiences online.

Although a surge in foot traffic doesn’t always translate into proportional spending, many of these concepts are designed to enhance the overall property experience, not necessarily to boost direct retail sales. That said, their presence can elevate the value of adjacent tenants and contribute to a more vibrant ecosystem.

Filling the Gaps: Dead Space Gets a Second Life

Rather than replacing traditional anchors, landlords are increasingly backfilling long-vacant spaces with high-engagement concepts, especially in secondary markets where retail demand has softened. Successful conversions include casinos, medical offices, entertainment venues, logistics hubs, and select educational uses. While educational tenants can be hit or miss, others have proven effective in stabilizing occupancy and driving traffic.

In contrast, top-tier markets continue to favor more generalized retail tenants for backfilling, maintaining a conservative approach to tenant mix. In places where risk tolerance is higher and innovation is welcomed, these lifestyle concepts are thriving.

Measuring the Impact: ROI Beyond the Register

For landlords, evaluating the return on investment for these concepts requires a broader lens. It’s not just about rent per square foot, it’s about activation, engagement, and long-term viability. These venues often serve as anchors of experience, drawing consistent traffic and creating a halo effect that benefits surrounding tenants.

These concepts also generate indirect returns, enhancing brand visibility, driving social media engagement, and creating a differentiated identity for the property. Their presence often lifts the performance of nearby tenants, creating a synergistic effect that supports long-term viability.

The Fine Print: Zoning, Clauses & Cash Flow Risk

As store closures reshape occupancy and valuation across the sector, landlords are turning to high-engagement concepts to stabilize assets. Zoning is generally flexible in large retail developments, with many adaptive uses, casinos excluded, already permitted.

Anchor transitions can trigger significant legal and financial ripple effects. Many tenants have co-tenancy clauses, and new experiential anchors like casinos or entertainment venues may not meet those terms. If other anchors are also vacant, tenants may opt to vacate or shift to reduced rent or percent-in-lieu arrangements, impacting property cash flow. These clauses often include sunset provisions, allowing tenants to exit entirely after a set period.

As retail evolves, unconventional tenants that bring energy, differentiation, and a sense of place will play a growing role in shaping the next chapter of mall performance.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. En l oe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Myrtle Beach, Naples, New York, Northern New Jersey, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

Hospitals Lead the Charge: Investor Confidence Grows in Healthcare Assets

By: E r ik Hill, MAI, CRE, CCIM, MRICS
September 23, 2025

As the broader commercial real estate market continues to navigate economic headwinds, the healthcare sector has quietly charted a course of resilience and growth. While other asset classes grapple with volatility, healthcare real estate has demonstrated a unique ability to adapt, driven by rising demand, strategic investor interest, and a shifting landscape of care delivery.

In the second quarter of 2025, one of the most notable trends in healthcare real estate was the continued decline in new construction volume. At the same time, absorption rates increased, pushing national occupancy averages above 92%. This dynamic created a tightening market, where existing facilities saw increased utilization and investor interest.

Hospitals and health systems, along with private investors, emerged as the dominant buyers in the sector during the first half of the year. In contrast, REIT activity was relatively muted—a departure from previous years when institutional capital played a more prominent role. This shift underscored a growing confidence among operators and private capital in the long-term viability of healthcare assets.

From a capital markets perspective, medical office cap rates expanded slightly in Q2 compared to Q1, rising by approximately 10 to 20 basis points. Hospital transaction volume outpaced its historical average, signaling strong investor appetite. Medical office transactions remained somewhat below their historical norms, but the sector showed signs of stabilization.

Interest rates continued to pose a challenge for securing capital, but sentiment shifted. More investors became comfortable operating in a higher-rate environment, recalibrating expectations and deal structures accordingly. Construction costs remain a significant barrier to new supply, with elevated expenses driving up rent rates and making new developments harder to justify.

Despite these challenges, signs of stability have emerged. The inpatient sector experienced steady growth, and behavioral health and substance use treatment facilities attracted increased interest. These specialized assets gained traction as demand for mental health services continued to rise, presenting new opportunities for investors and developers alike.

Looking ahead to the remainder of 2025, the industry is watching closely for continued Fed rate cuts. If rate cuts continue, such a move could unlock transaction volume across all healthcare property types, providing a much-needed boost to deal flow. Additionally, portfolio transactions are anticipated to gain momentum in the second half of the year, with rumors of one or two major deals having circulated among market participants.

In a year marked by uncertainty, healthcare real estate has proven to be a beacon of stability. For investors seeking durable income and long-term growth, the sector continues to offer compelling opportunities—particularly in areas aligned with evolving care models and demographic trends. As 2025 progresses, healthcare assets are positioned to lead the charge in redefining what resilience looks like in commercial real estate.

Looking forward, the healthcare real estate sector is poised to benefit from demographic shifts, evolving care models, and potential monetary policy adjustments. Investors should monitor developments in behavioral health, inpatient care, and portfolio transactions, as these areas are likely to shape the market trajectory through the end of 2025.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. En l oe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Naples, New York, Northern New Jersey, Oklahoma City, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.