Zoning laws impact industrial outdoor storage availability

Industrial outdoor storage lots may be easy to overlook, but they are essential for builders, logistics companies, utility providers and others that need space to store equipment and materials for their operations.

IOS supply is not keeping up with the demand powered by Southwest Florida’s growing population and the resulting need for residential, commercial and infrastructure development, according to real estate brokers who specialize in industrial property. And local zoning restrictions that limit land use are the biggest hurdle for companies seeking IOS space.

“The need is huge,” said Mayhugh Commercial Realty Advisor Chris Ferritto, whether that’s for storing underground piping, roof tiles, fencing, trucks, heavy equipment or even junk. “All that stuff has to be stored outside, for the most part.”

IOS sites are often restricted to heavy industrial-zoned property. Even then they may require special approval depending on the materials being stored, Ferritto explained. Community opposition, aesthetic and environmental regulations, and other factors can make getting a site approved for IOS use even more complex.

He warns that tenants who have stored industrial materials outside on land that’s zoned for light industrial or other uses have increasingly reported being cited by code enforcement officials.

“It takes a lot of time to get these properties up and running,” Ferritto said. “We’re seeing guys that aren’t going through that process, and the county is cracking down on them. What could be a great IOS site is not because its ownership is not jumping through the hoops to get those zoned properly.”

Lee County Code Enforcement didn’t report any special effort to crack down on improper IOS sites. But they initiated 121 cases involving unpermitted open storage in the past three years, of which 75 have been brought into compliance, Lee County Communications Director Betsy Clayton said.

“We continue to enforce the requirement that open storage on zoned properties where the use is permitted must have prior approval through applicable permits and development orders,” Clayton said.

Lee County has 92 parcels or 345 total acres for industrial open storage use, not including some additional open storage that is ancillary to land zoned for other uses. On average those parcels are 3.75 acres. Most of them are in unincorporated areas of Lee while 38 of the parcels or 107 acres are in cities within the county.

“It’s a hot ticket…” said Bob Johnston, principal with Lee & Associates, a Naples and Fort Myers commercial real estate firm. “But there’s not a lot of land that’s zoned industrial.”

Ferritto said that IOS sites are typically pushed to the outskirts or were grandfathered into central urban areas. As cities revitalize run down areas that may have been previously used for IOS, even more supply may dry up.

“The dirtier the use, the more need for heavy industrial zoning,” Ferritto said. “And they’re just not making any more of it. Cities don’t want it. It’s an eye sore.”

Growing commercial hubs, such as the Alico Road corridor and near Interstate 75 and Southwest Florida International Airport, are among the most wanted IOS spots because they offer convenient and easy transportation access. Ferritto expects to see some growth in IOS use pushed toward eastern Lee County and further inland toward Immokalee or Okeechobee.