A net leased property is a real estate arrangement where the tenant not only pays rent but also covers some or all ongoing property costs like taxes, insurance, and maintenance. For investors this matters because it makes income more predictable and lowers the landlord’s operating expenses and risk—similar to renting a car where the renter also pays for fuel and upkeep, leaving the owner with steadier, more passive returns.
industrial outdoor storage (ios)technical
Industrial outdoor storage (IOS) is the use of land or paved yards to park, stack, or stage heavy equipment, raw materials, shipping containers, or finished goods instead of storing them inside buildings. Think of it like a large parking lot or staging area for industrial items; it matters to investors because IOS can boost usable revenue-generating space, lower construction costs, and attract different tenants, but it also brings higher regulatory, environmental, and insurance risks that affect property value and operating expenses.
sale leasebackfinancial
A sale leaseback is a financial arrangement where an owner sells an asset, such as property or equipment, and then immediately rents it back from the new owner. This allows the original owner to access cash while continuing to use the asset, similar to selling a valuable item and renting it back to keep using it. For investors, it can provide steady income and reveal how a company manages its assets and finances.
logisticstechnical
Logistics is the planning and execution of how goods, materials and related information are moved, stored and delivered from suppliers to customers. It matters to investors because efficient logistics cut costs, speed up delivery and reduce disruptions—similar to a well-run backstage crew that keeps a performance on time—while poor logistics can erode profit margins, damage reputation and create operational risks that affect a company’s value.
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NEW YORK--(BUSINESS WIRE)--
Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the acquisition of a last-mile delivery distribution facility adjacent to Los Angeles International Airport (LAX) that is long-term net leased to a major multinational e-commerce retailer. The $211 million acquisition includes a newly developed Class A distribution building and an industrial outdoor storage (IOS) parking site on 19 acres of land.
“We are pleased to acquire this facility in a highly strategic distribution location, underscoring our continued strategy of securing key net lease investments in core logistics markets,” said David Gross, Managing Director at Morgan Stanley Real Estate Investing. “This facility in particular is a critical asset for distribution and logistics needs in a significant region of Southern California where both a lack of space and regulatory hurdles present development constraints.”
The property is uniquely situated adjacent to LAX in West LA and provides unparalleled distribution access to some of the region’s most affluent communities including Santa Monica, Brentwood and Beverly Hills, and their three million residents.
MSREI recently announced the sale leaseback of a 26-acre IOS facility in Fontana, CA, for Oldcastle Infrastructure in November 2025. With this West LA facility, MSREI has acquired approximately $1.5 billion of U.S. industrial assets this year bringing its U.S. industrial portfolio to more than 75 million square feet.
Commenting on the asset class, Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing, said: “The rise of e-commerce has fundamentally increased demand for well-located, modern logistics assets which we believe are critical infrastructure for today’s economy and offer strong, long-term growth.”
About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management business of Morgan Stanley. One of the most active property investors in the world for over three decades, MSREI employs a patient, disciplined approach through global value-add / opportunistic and regional core / core-plus real estate investment strategies. With 17 offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise. MSREI currently manages $55 billion of gross real estate assets worldwide on behalf of its clients.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has approximately 1,400 investment professionals around the world and $1.8 trillion in assets under management or supervision as of September 30, 2025. Morgan Stanley Investment Management strives to provide strong long-term investment performance, outstanding service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
