Business Insights | UK Industrial Open Storage: A Market Coming of Age

The UK’s Industrial Open Storage sector is undergoing a transformation. Once considered a fragmented and informal segment of the industrial market, Industrial Open Storage is now emerging as a strategic asset class. This shift is being driven by structural demand, constrained supply, and growing recognition of sectors role in supporting logistics, infrastructure, and operational resilience.

Industrial Open Storage sites increasingly support a wide range of occupiers, from logistics and construction to fleet operators and infrastructure providers. Their flexibility and relatively low capital intensity make them attractive in a market where land is scarce and operational agility is critical. As supply chains become more complex and urban logistics more demanding, the need for well located, secure, and adaptable land has grown. The sites offer a cost effective and operationally essential solution.

Supply Constraints and Market Dynamics

The UK market is particularly dynamic due to the limited availability of high quality, infrastructure ready Industrial Open Storage land. Planning constraints, competing land uses, and a lack of new development have created a supply demand imbalance. While demand has broadened, sites with B8 planning consent, hardstanding, drainage, and utility access remain scarce. This has led to a growing focus on landlords upgrading secondary assets and unlocking value through active asset management.

Industrial Open Storage Categories and Occupier Needs

The market spans several categories:

• Vehicle and Fleet Storage: High demand from last mile delivery and EV fleet operators. These occupiers require power infrastructure for charging, secure access, and proximity to urban centres.
• Construction and Infrastructure Storage: Essential for major projects, especially in regions undergoing transport or energy upgrades. Typically leased short term but valued for flexibility and strategic importance.
• Container Storage and Logistics Staging: Located near ports, rail terminals, or motorway junctions. Critical for overflow, transshipment, and supply chain de-risking. Value is tied to connectivity and surface quality.

Valuation Considerations

Valuing Industrial Open Storage assets requires a nuanced approach. Unlike traditional industrial properties, value is driven by land utility, part buildings, infrastructure, and location.

Key valuation drivers include:

• Surface Quality and Infrastructure: Sites with tarmac/concrete surfacing, drainage, and perimeter security command higher rents.
• Power Access: Three-phase electricity is increasingly important, especially for EV fleets and onsite operations.
• Location: Proximity to major road junctions, ports, or urban centres drives demand and lease length.
• Planning Status: Sites with B8 consent or a clear path to it are more attractive to investors and occupiers.

Lease structure and tenant covenant strength are influencing yields. Long term leases with mission critical occupiers are helping reposition Industrial Open Storage as a long income product.

Sites with low site density (typically 20% or less) are increasingly desirable, offering diversified income streams from both land and buildings. This dual income profile enhances asset resilience.

Assets in growth corridors are being valued not only on current income but also on future optionality, with redevelopment potential and planning flexibility priced in. Yields are compressing for core assets with strong covenants and long leases, while value add opportunities with shorter leases or redevelopment angles offer upside through active asset management.

Capital Flows and Institutional Interest

Institutional capital is now flowing into the sector at scale, signalling a shift in perception and deployment. Notable transactions include:

• Almcor & Cerberus JV: Almcor, through its joint venture with Cerberus, has made one of the UK’s largest Industrial Open Storage acquisitions to date with the purchase of Childerditch Industrial Park near the M25. Peter McCluskey, Head of Active Value at Almcor, stated: “Industrial Open Storage continues to attract us through its diverse income streams, strong rental growth fundamentals, and its natural alignment with the broader industrial and logistics sector. It offers both resilience and scalability, which are key to our long-term strategy.”
• Nuveen: A rising force in the UK Industrial Open Storage market, Nuveen has acquired 11 assets to date, including a portion of the Project Ottawa portfolio from Segro in February 2025, with further acquisitions currently under offer. This strategic growth underscores Nuveen’s commitment to the sector and positions it among the leading investors shaping this sector.

These deals reflect a broader trend: Industrial Open Storage is being treated as a scalable, alternative income strategy that complements core industrial allocations. Investors are targeting sites with strong transport connectivity, robust power infrastructure, and planning flexibility, recognising both current income and long-term optionality.

Conclusion

The Industrial Open Storage market is maturing. As demand grows and institutional strategies evolve, the sector is being redefined, not just as land, but as a core component of the UK’s industrial and infrastructure ecosystem. The opportunity lies in recognising the value of these assets not only for their current utility but for their future potential.