New industrial outdoor space (IOS) supply is scarce, leading to lopsided demand-to-supply dynamics persisting within the sector. Now, a new report from Marcus & Millichap points out a few headwinds that this niche is facing after phenomenal growth.

Availability among existing IOS properties stands at under 3 percent nationally, well below the broader industrial sector's record low of 3.6 percent, according to the report.

Supply is highly limited, with IOS acreage comparable to 5 percent of total industrial square footage as of March. Sites for new IOS space are even harder to come by, especially in more populous areas.

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