Beyond the Bio with Alex Keeton

Meet Alex Keeton, an Industrial Outdoor Storage (IOS) specialist on Stream’s Industrial Capital Markets team. We recently sat down with Alex, and he gave us the lowdown on the IOS sector, how he ended up focusing on this asset class, and the tremendous growth and interest IOS has spawned amongst institutional clients.  >

Explain your CRE journey and how you ended up focusing on IOS. 

Before getting into commercial real estate, I worked for 5+ years in a completely unrelated industry (sports marketing) and left at the end of 2020 to pursue real estate, landing at a small boutique firm in Dallas. Initially, I started as a traditional tenant rep broker. However, as I was reading real estate news to learn more about my new industry, I noticed a lot of traction within industrial outdoor storage. It piqued my curiosity, so I cold-called institutional capital managers, asking them more about the asset class. I decided to commit fully to IOS to differentiate myself from the competition, focusing initially on growing business locally with mostly acquisitions and off-market opportunities, and working directly with institutional capital. It didn’t take long for me to realize my knowledge and skills could be harnessed more effectively within a Capital Markets team. I began talking with Seth Koschak and ended up joining Stream’s Industrial Capital Markets (ICM) team in 2023.   

What makes IOS so unique, and why is now the time for investors to get into this arena? 

It’s largely an untapped asset class that’s been overlooked by institutional capital. More than 75% of properties across the US are still owned by private investors or high-net-worth individuals, who likely occupied the facility at one point in time. This creates a lot of potential to capitalize on these opportunities for institutional capital groups looking to diversify their asset class. There’s a strong comparison of IOS to the self-storage boom, especially in that the majority were privately owned, and now there is a large amount of institutional capital focused on self-storage. Every month there seems to be an announcement of new capital being dedicated to IOS.   

Who are some of the most active investors in IOS? 

As the IOS space continues to grow, the amount of interest in the space is expanding rapidly. Due to this, institutional capital is evaluating the product type, and we are seeing an influx of investor demand. Groups we frequently interact with are Alterra, Ambient, Everwood, Industrial Outdoor Ventures, Outour, Realterm, Stonemont, and Triten.  

Are there specific markets that are seen as more attractive for IOS, and if so, which ones? 

Infill is a priority. Anything within the 635 Loop in Dallas and 820 Loop in Fort Worth are big drivers, and 35 East and West running through Dallas & Fort Worth. These thoroughfares provide users with the accessibility and connectivity needed to manage their businesses efficiently, especially when it comes to nationwide distribution. South Fort Worth, the Stemmons Corridor, and Alliance/North Fort Worth are the most active at the moment, as well as further north in Frisco and McKinney, where there’s been a lot of population growth occurring.  

What does the future look like for the IOS sector over the next 2-3 years?   

The IOS market is going to experience continued growth across the board. User demand remains elevated, and institutional capital will be enhanced for the product type as more data becomes available. Our team expects to see developers break ground on speculative projects catered to the growing (and changing) demand profile users require to serve their customers most efficiently. Supply and demand fundamentals remain in check, and DFW will undoubtedly be a leader within the IOS space for many years. I am excited to be a part of this growth, and I’m eager to source opportunities for groups who are also looking to drive this change.