Terminal Logistics: A New Type Of Platform For The IOS Sector

While much of commercial real estate navigates a shifting landscape, one asset class has distinguished itself: industrial outdoor storage.

IOS properties have performed impressively in the past few years, even compared to other industrial assets. IOS rents have increased 123% since 2020, more than twice the rate of bulk warehouses. Meanwhile, vacancy rates for IOS averaged just 4.9% across 15 top markets — less than half of the 10.5% seen in bulk warehouses over the same period. 

Industrial outdoor storage has proven countercyclical, with demand increasing from tenants and investors, intensifying competition and validating investment theses, as Bisnow reported in December. 

Center Capital Partners Managing Director Jeremy Cohen said his firm, which was founded in 2021, has been buying IOS since the beginning through its platform Terminal Logistics, quickly establishing itself as one of the earliest and most disciplined buyers of IOS at scale. 

Bisnow spoke with Cohen to learn more about Center Capital’s unique approach to IOS, including the platform the firm has specifically developed for this burgeoning market. 

Bisnow: How does Terminal Logistics fit into Center Capital’s broader approach to investing? 

Cohen: Center Capital recognizes that real estate, infrastructure and capital flows are evolving and that the next generation of real estate investing lives in the institutionalization of essential — and often fragmented — sectors. Our broader strategy has always been to identify mission-critical, supply-constrained sectors ahead of institutional capital and build scalable platforms around them.

We’ve applied that approach across multiple verticals. For example, we identified private aviation infrastructure as a fragmented, supply-constrained niche with strong secular tailwinds. We were early in recognizing the fundamentals within that ecosystem and moved to build a scalable platform around it through our investment in Sky Harbour Group. IOS is a natural extension of that strategy, and Terminal Logistics reflects that same philosophy: start with strong fundamentals, build with discipline, and scale into something institutions can own.

Bisnow: What makes IOS such an attractive sector right now?

Cohen: At its core, IOS sits at the intersection of logistics, infrastructure and real estate. These are mission-critical assets, supporting everything from last-mile distribution to equipment storage and fleet operations.

What makes the sector so compelling today is the simple imbalance between supply and demand. Demand has grown alongside increasing logistics complexity, but supply remains constrained due to zoning restrictions, limited available land and NIMBY dynamics. 

At the same time, ownership is still highly fragmented, and institutional penetration remains low. That combination of strong fundamentals, constrained supply and fragmentation creates a unique opportunity to build at scale. 

More broadly, IOS liquidity, debt capital markets execution and portfolio trade velocity have improved dramatically over the last 24 months, increasing execution across the board.

Bisnow: Where are we in the life cycle of IOS as an asset class?

Cohen: We believe IOS is still in the early innings of institutionalization. You’re starting to see more capital recognize the space, but it’s still far from fully understood or efficiently priced. That creates a window where disciplined operators can build high-quality portfolios ahead of broader institutional adoption.

Over time, we expect IOS to become a more established allocation within real estate portfolios, particularly given its durable cash flows, low capex profile and infrastructurelike characteristics. For example, IOS was recently added as a formal category within the industrial sector in the NCREIF Index, with more recognition of this kind likely to follow.

Bisnow: Tell us about Terminal Logistics and what differentiates the platform.

Cohen: Terminal Logistics is a dedicated IOS platform focused on assembling a high-quality, institutional-scale portfolio across key logistics markets.

What differentiates us is discipline and specialization. We are highly selective in what we acquire, with a strong focus on location, functionality and tenant demand drivers. We’ve never approached our IOS strategy as a volume game. It’s about building a portfolio that institutions will ultimately want to own.

We’ve also invested heavily in data and market intelligence. Our proprietary database combines transaction comps, broker relationships and real-time market insights, which allows us to underwrite with a level of precision that’s still uncommon in this space.

Just as importantly, we operate with a boots-on-the-ground approach. Understanding how these assets function day to day is critical in a sector like IOS.

Bisnow: How are you sourcing and evaluating opportunities in such a fragmented market?

Cohen: Fragmentation is one of the defining characteristics of IOS, and it requires a very relationship-driven sourcing strategy.

We’ve spent years building deep relationships with brokers, owners and tenants across our core markets. The majority of our deal flow is off-market or lightly marketed, which is where we believe the best opportunities exist.

On the underwriting side, we focus heavily on functionality. This includes access, layout, power, zoning and how the site supports tenant operations. Not all IOS sites are created equal, and that’s where discipline really matters.

Bisnow: What is your strategy for scaling the platform?

Cohen: Our focus is on thoughtful, consistent scale.

That means deepening our presence in markets where we already have conviction while selectively expanding into new markets where the fundamentals align with our criteria.

We’re constantly evaluating portfolio construction. We’re building a balanced, institutional-quality portfolio across geography, tenant mix and asset type. Scale for us is intentional. It’s about building something that has long-term liquidity and institutional relevance.

Bisnow: What’s next for Terminal Logistics?

Cohen: Continued growth, but with the same discipline that’s defined the platform from Day 1.

We see a long runway ahead for IOS and plan to remain a leading operator in the space. As more capital enters the sector, our goal is to stay ahead by continuing to execute, scale intelligently and deliver a portfolio that stands out in quality.

This article was produced in collaboration between Center Capital Partners and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.