Canadian Investment Giants Plot U.S. IOS Expansion
Two major Canadian investment managers are teaming up to bet on industrial outdoor storage near U.S. ports.
Sagard and La Caisse launched a joint venture targeting $360M in IOS acquisitions with the option to scale in the future, the firms announced Tuesday. The Canadian duo has made one purchase to date and is looking to pick up sites near major ports, population centers and trade infrastructure in big U.S. infill markets.
The IOS sector is drawing investors of all stripes, including giants in the real estate space, that are pouring capital into alternative assets.
“IOS is a critical supply chain asset class, benefiting from strong structural tailwinds — e-commerce growth, global trade, and nearshoring,” Rana Ghorayeb, head of real estate at La Caisse, said in a statement. “By leveraging Sagard's fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.”
La Caisse, formerly Caisse de dépôt et placement du Québec, manages more than $350B for pension funds and insurance programs in Canada.
Montreal-based Sagard, which has more than $33B in assets under management, will invest in the IOS assets through its Sagard Real Estate subsidiary. The joint venture is targeting key U.S. seaport markets, with a focus on Southern California, the New York City region, the San Francisco Bay Area, Houston and greater Baltimore.
Its first acquisition in greater New York City is fully leased and has connectivity to Manhattan and the Port of New York and New Jersey, the company said. The joint venture declined to provide additional details about the acquisition
The Canadian firms’ commitment to U.S. acquisitions comes as trade and political relations between the two countries sit at historical lows, and some analysts and investors have worried that President Donald Trump’s bellicose rhetoric could sap investment interest from the north.
Still, the U.S remained the most popular destination for Canadian investments in the first nine months of 2025, pulling in 30% of outbound capital, according to MSCI.
IOS rents have more than doubled since 2020, and the sector has remained resilient throughout shifting tariff and trade policy. The positive momentum and macroeconomic tailwinds are driving institutional investors to the space.
Brookfield Asset Management last month agreed to buy out Peakstone Realty Trust for roughly $1.2B to take the REIT and its 60 IOS sites off the public market. Morgan Stanley’s real estate investment arm paid $92M for an IOS site in Southern California in November.
“Everyone's fundamental view of the space is that there is a diminishing supply of IOS real estate and heightened demand across the country,” Alterra IOS Senior Vice President of Acquisitions Mark Gannon told Bisnow in December. “What that leads to is rent growth and compelling cash flow characteristics for your investors.”
UPDATE, MAR. 10, 2:53 P.M. ET: This story has been updated to reflect a response from the joint venture.
