Barings, Brennan Launch IOS Venture

Barings has formed a joint venture with Brennan Investment Group to deploy $150 million across industrial outdoor storage investments nationwide. Yet, the duo will focus chiefly on markets such as Texas and the Mountain West, Commercial Observer reported.

The partnership may scale beyond the initial $150 million earmark as it identifies markets with robust fundamentals, including strong e-commerce, development, infrastructure and population growth.  

Barings and Brennan have already made an IOS acquisition in Denver, consisting of a 4.8-acre, two-building asset. The emerging market’s industrial transaction volume stood at $383 million during 2025’s first half, with assets trading at $133 per square foot—$3 above the national average, according to a Yardi Matrix report.

IOS’ solid performance metrics

Though highly fragmented, the national IOS market has witnessed an influx of recent institutional investment activity. Earlier this year, Catalyst Investment Partners sold and recapitalized two such portfolios comprising 18 properties across the East Coast for $163.5 million.

Among the sector’s selling points are its high barriers to entry, as the zoning challenge leads to low supply, according to GreenPoint Partners CEO Chris Green. Though investors found workarounds, including warehouse-to-IOS redevelopments. Unbound Development purchased a 100,000-square-foot facility in Chandler, Ariz., for such a repositioning.

With product being scarce, IOS vacancy stood below 3 percent across the nation, according to CBRE. Additionally, the sector attracts strong premiums with rents ranging from $25 to $30 per square foot, as opposed to a traditional warehouse, which might rent for $15 per square foot.

These sound sector dynamics facilitated owners’ access to debt markets. Two months ago, Blackstone provided $231 million in financing for a 293-acre IOS collection spread throughout 13 states. A subsidiary of Jadian Capital secured the loan.