Heitman Enters $200M IOS Deal

January 16, 2026

Investment Industrial Mid-Atlantic News More Southeast

The agreement includes the recap of a 105-acre portfolio.

Heitman and Open Industrial have formed a new partnership targeting industrial outdoor storage properties. The duo recapitalized a 25-property collection spanning 105 acres, having earmarked $200 million in equity for this deal, as well as new IOS investment over the next year.

This transaction marked Heitman’s first IOS deal, a spokesperson for the company told Commercial Property Executive.

Park Madison Partners served as the exclusive financial advisor on this deal on behalf of Open Industrial.

The portfolio encompasses sites located in infill submarkets near major transportation nodes and population centers throughout Virginia, Maryland, North Carolia and South Carolina. The tenant roster comprises companies active in the logistics industry and equipment rental, as well as construction, among others.

Open Industrial debuted in 2020, operating and owning IOS properties throughout the U.S. It employs proprietary technology that informs decision-making across deals, asset management and leasing.

Heitman had $48 billion in assets under management as of September. Some of its previous moves included the closing of an $806 million debt fund last year and another recapitalization, this time on a 795,000-square-foot cold storage collection. The firm teamed up with Provender Partners and Cerberus Capital Management.

Attractive IOS fundamentals lure investors

IOS continues posting strong fundamentals, stemming from supply challenges and potent demand driven by logistics, rental and infrastructure-related tenants, according to a prepared Heitman company statement.

As the IOS capital markets become more efficient, valuation appears to compress; yet, well-diversified portfolios will continue to command premiums due to institutional investors seeking exposure to the fragmented sector, leading to cap rate moderation, a Heitman spokesperson told CPE.

In fact, IOS’ rent growth (122.8 percent) has doubled that of bulk warehouses (60.3 percent) during the five-year stretch ending in July 2025, according to a Newmark report. Notably, the subsector also had half the vacancy compared to its counterpart, 4.9 percent versus 10.5 percent. Newmark incorporated data across 15 markets for its analysis.

Other IOS partnerships include Barings and Brennan’s venture. It was forged last August with plans to deploy $150 million. Last October, Realterm also partnered with institutional investors advised by J.P. Morgan to buy a seven-asset, fully leased assemblage comprising 74.2 acres.