Brookfield and Blackstone are increasing their investments in industrial outdoor storage lots as equipment demand grows with the artificial intelligence build-out. Brookfield spent $1.2 billion to take Peakstone Realty Trust private, while Blackstone’s real estate debt arm made six loans totaling more than $1.1 billion. Rents roughly doubled across eight major markets between 2020 and the third quarter of this year, with average rent per usable acre rising 103.5% to nearly $11,000 per month. Scarce properly zoned land, sticky tenants and slightly higher yields attract investors, although smaller buyers face financing costs and zoning risks. The market still offers opportunities below institutional deal thresholds, generally between $3 million and $5 million, as well as smaller assets in some secondary markets.
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