CBRE: 17.9% rent premium, 2.5% vacancy - and 3 new closings

CBRE's Q4 2025 data confirms IOS vacancy at 2.5% versus 6.7% for traditional industrial, with rents commanding a 17.9% premium nationally at $13.14/SF. This week Realterm deepened its Phoenix Sky Harbor footprint, Millennium CRE closed a $5.1M disposition in Colorado Springs, and Alluvion Partners made an off-market move into the Chattanooga MSA.

IOS Rents Hit $13.14/SF - 17.9% Above Traditional Industrial

**IOS Market Pulse: March 20-23, 2026**

CBRE's Q4 2025 data confirms what operators already know: IOS is running at 2.5% vacancy while traditional industrial sits at 6.7%, with rents commanding a 17.9% premium nationally. This week Realterm added a second Phoenix property to its Sky Harbor footprint, Millennium CRE closed a $5.1M disposition in Colorado Springs, and Alluvion Partners made an off-market move into the Chattanooga MSA. CBRE also closed a rare life company-placed refinancing on an 8-property IOS portfolio spanning 5 states.

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📊 The Headliner: CBRE's Q4 2025 IOS Data Drop

IOS Vacancy at 2.5% - Nearly 3x Tighter Than Traditional Industrial

CBRE's Q4 2025 IOS report is the data every IOS operator, investor, and broker should be quoting. National IOS rents hit $13.14 per square foot - a 17.9% premium over the $10.85 per square foot that traditional industrial is fetching. Vacancy held at 2.5%, versus 6.7% for conventional industrial. The divergence is structural: restrictive zoning and local opposition to new IOS development make supply additions nearly impossible, which has driven tenant retention to historic highs and given landlords sustained pricing power heading into 2026.

**Key Numbers (Q4 2025):** - **IOS Average Rent:** $13.14/SF nationally - **Traditional Industrial Rent:** $10.85/SF - **IOS Rent Premium:** 17.9% above traditional industrial - **IOS Vacancy:** 2.5% - **Traditional Industrial Vacancy:** 6.7% - **Top Rent Growth Markets:** Kansas City, Indianapolis, Charlotte, Cincinnati - **Emerging Markets to Watch:** Los Angeles, Savannah, Columbus, El Paso

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🔥 Deals That Closed (March 20-23, 2026)

DEAL #1: Phoenix, AZ (Sky Harbor) Realterm Acquires IOS Facility in Supply-Constrained Sky Harbor Submarket

Realterm added a second asset to its growing Phoenix Sky Harbor footprint, acquiring a purpose-built logistics facility at 3615 S. 28th Street. The site features two maintenance facilities and an on-site wash canopy - purpose-built for fleet and equipment operators. Ed Brickley, Managing Director at Realterm, described it as "exactly the type of asset we seek." The deal builds on Realterm's October acquisition of 4475 N. 43rd Avenue in the same market.

**Property:** 3615 S. 28th Street, Phoenix, AZ
**Site:** 2.8 acres
**Improvements:** 19,819 SF across 2 maintenance facilities
**Price:** Undisclosed
**Key Features:** 9 ground-level doors, on-site wash canopy, 3 points of ingress/egress, immediate access to I-10, I-17, US Route 60, Loop 202, proximity to Sky Harbor Airport
**Buyer Lead:** Brendan Coleman, Associate Vice President - Investments, Realterm
**Seller:** Not yet disclosed
**Broker / Deal Team:** Not yet disclosed

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DEAL #2: Colorado Springs, CO Millennium CRE Closes $5.1M IOS Disposition at 702 Clark Place

Millennium Commercial Real Estate facilitated the sale of 702 Clark Place in Colorado Springs - a low-coverage IOS property featuring a 21,404 SF industrial building on 3.89 acres. Drew Dowis with Millennium CRE represented both sides of the transaction. The buyer was BEDNAD LLC.

**Property:** 702 Clark Place, Colorado Springs, CO
**Site:** 3.89 acres
**Improvements:** 21,404 SF industrial building
**Price:** $5,100,000
**Buyer:** BEDNAD LLC
**Broker / Deal Team:** Drew Dowis, Millennium Commercial Real Estate (dual representation)

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DEAL #3: Chattanooga MSA, TN (Soddy-Daisy) Alluvion Partners Acquires Off-Market IOS Asset in Chattanooga MSA

Alluvion Partners picked up an off-market IOS asset at 214 Industrial Park Drive in Soddy-Daisy, Tennessee - a low-coverage industrial property in the Soddy Daisy Industrial Park with direct access to Hwy 27 and the I-24/I-75 corridors. The acquisition comes with immediate lease-up potential: renovations are underway and the property is already available for occupancy. Dean Taylor led the Alluvion deal team.

**Property:** 214 Industrial Park Drive, Soddy-Daisy, TN
**Site:** 4.52 acres
**Improvements:** 27,257 SF warehouse, 3,700 SF office
**Price:** Undisclosed
**Key Features:** 16' clear heights, 8 drive-in doors, 2 dock-high positions, 1,200 amps 3-phase power, significant stabilized outdoor storage area
**Buyer Lead:** Dean Taylor, Alluvion Partners
**Broker / Deal Team:** Jeff Howell and David DeVaney, SIOR, CCIM - NAI Charter

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💰 Capital Markets

CBRE Closes Life Company Refinancing on 8-Property IOS Portfolio Across 5 States

CBRE arranged a refinancing for an 8-property industrial outdoor storage portfolio spanning 5 states. The transaction priced at 58% LTV with a full-term interest-only structure - and was placed with a life company lender, a relatively rare execution for IOS given most institutional lenders still favor gateway industrial. Nick Santangelo led the CBRE debt and structured finance team on the deal.

**Structure:** 58% LTV, full-term interest-only
**Lender:** Life Company (name not disclosed)
**CBRE Deal Team:** Nick Santangelo, Bruce Francis, Bob Ybarra, Shaun Moothart, Doug Birrell, James Korinek, Carly Grabher, Anna Britt, Amber Coleman, Andrew Post, Matt Thorp, Griffin Walker

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📊 Market Intel Spotlight: National IOS Fundamentals

IOS continues to widen its performance gap versus traditional industrial on every key metric heading into 2026. With virtually no new supply coming online in most markets, the sector is structurally landlord-favorable.

**National IOS Snapshot (Q4 2025):** - **Rent (national avg):** $13.14/SF - 17.9% premium over traditional industrial - **Vacancy:** 2.5% (vs. 6.7% for traditional industrial) - **Supply constraint:** Restrictive zoning and local opposition block new development in nearly all major markets - **Demand drivers:** Construction, utilities, trucking, equipment rentals - all operating near capacity - **Top growth markets:** Kansas City, Indianapolis, Charlotte, Cincinnati - **Emerging markets:** Savannah, Columbus, El Paso - all showing rent acceleration

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📈 Operating Context

Jadian Capital Lines Up More Than $2B for Second Fund - $500M Earmarked for IOS

Jadian Capital has secured over $2 billion in commitments for its Jadian Real Estate Fund II, finishing 40% above its $1.4B target and expecting a final close in April. Within the raise, the firm earmarked $500M specifically for its JIOS Fund I IOS sidecar. The fund targets niche property types including IOS, aircraft hangars, and small warehouses. The leadership team behind the raise includes Jarret Cohen, Dan Schuchinsky, Matthew Hennessy, Joe Cridge, and Aman Kapadia.

**Practical takeaway:** $500M in dedicated IOS equity from one platform signals continued institutional demand for the asset class well into 2026 and beyond - and means more competition for deals in core markets.

DB2RE Closes IOS Disposition in Irving, TX (DFW) - Ambient Capital Acquires Avis-Leased Site

Davidson Bogel Real Estate (DB2RE) facilitated the sale of 1600 East Airport Freeway in Irving, Texas. The 4.08-acre property features two buildings totaling 20,800 SF and is 100% leased to Avis Car Sales. Ambient Capital was the buyer. David Guinn, SIOR, and Philip Cherrick with DB2RE represented the seller, Clay Cooley.

**Practical takeaway:** Net-leased IOS with auto fleet tenants continues to attract buyers - credit tenancy plus outdoor utilization is a proven formula in high-barrier DFW submarkets.