The economics.
What we build, what each site costs to bring online, what stabilized operations produce, and the exit pathways available at each stage. Indicative model. Per-site numbers vary by corridor, market, and entitlement specifics.
One indicative site. Numbers are ranges, not promises.
The model below represents an indicative OTR site on the I-95 NC/SC/GA corridor — roughly 100 stalls, executive tier, off-grid-capable. Actual per-site economics vary with land cost, freight density, jurisdictional friction, and how the deal exits. The shape of the model holds across most candidate parcels. The specific numbers move site by site.
Every dollar figure below is indicative, derived from comparable industrial outdoor storage development costs and stabilized truck parking operator data, sources available on request. Per-site figures are confirmed against the specific parcel during entitlement due diligence. Nothing on this page is a forward-looking projection or a representation of expected return.
Executive-tier secure truck parking. Minimum viable, off-grid-capable.
OTR sites are deliberately minimal. The asset doesn't compete with full-service truck stops on amenities. It competes on what those facilities consistently fail to deliver — secure overnight parking inventory for drivers who need to run out their hours. Every design choice removes cost without removing the value that drivers and fleets actually pay for.
Footprint
Approximately 100 stalls at executive spacing. Class 8 turning radius engineered at entry and circulation paths. Designed for backed-in or pull-through depending on lot geometry.
Surface
Gravel surface across stall area — proven load-bearing, lower cost than asphalt, easier maintenance. Asphalt or concrete at entry, exit, and the bathroom approach.
Security
Eight-foot security fencing with anti-climb. LED perimeter lighting. Camera coverage at entry, exit, and stall area. Gated entry with card / app authentication. No on-site attendant — the gate, the lights, and the cameras do the work.
Power and utility
Solar plus battery for lighting and gate where the grid is far or expensive. Diesel generator backup. No stall hookups — that classification triggers RV park regulations and adds complexity without adding revenue.
Bathroom
One central bathroom building with covered porch, lit, secured, cleaned daily. The bathroom is the differentiator. Drivers paying executive-tier rates will not accept porta-johns. The fleets paying for those drivers will not either.
Access control
Driver identity verified at registration. Credit card on file. CDL number captured. Single-night, multi-night, or anchor-tenant reserved blocks. The vetting layer keeps the parking environment one driver wants to come back to.
Indicative capex: roughly $1.5M to $2M per site.
The cost ranges below reflect a typical I-95 corridor site. Rural Southeast land cost is at the low end of national truck parking development. Sites with municipal utilities, federally-mandated environmental work, or premium suburban land come in higher.
| Line item | Indicative range | Notes |
|---|---|---|
| Land acquisition | $250k – $450k | Rural exit parcel, 5-7 acres. Higher near metros. |
| Site prep, grading, drainage | $150k – $250k | Varies with topography and stormwater requirements. |
| Surface (gravel + asphalt entry) | $200k – $350k | Compacted gravel interior with sealed entry/exit pad. |
| Perimeter fencing and gates | $80k – $150k | Eight-foot anti-climb, double gates at entry/exit. |
| Lighting + power infrastructure | $100k – $180k | LED with solar/battery on off-grid sites. |
| Bathroom building | $120k – $180k | Central facility, ADA compliant, covered porch. |
| Access control + cameras | $60k – $100k | Card / app gate, network cameras, NVR storage. |
| Utilities tie-in (where grid) | $50k – $150k | Electric, water/sewer or septic. Off-grid replaces with solar+battery+well. |
| Permits, engineering, soft costs | $150k – $250k | Civil engineering, permits, legal, financing, project management. |
| Contingency (10%) | $120k – $200k | Standard development contingency. |
| Total per site | $1.3M – $2.1M | Model uses approximately $1.5M for I-95 corridor base case. |
Stabilized revenue, opex, and NOI at the indicative base case.
The revenue model is straightforward: stalls × nightly rate × occupancy. Three variables drive the entire picture. Industry rates on executive truck parking range roughly $28-35 per night depending on market. Stabilized occupancy on a well-located corridor facility typically lands in the 55-70% range. The ramp from opening to stabilization is two to three years.
| Line item | Year 1 (ramp) | Year 2 (ramp) | Year 3 (stabilized) |
|---|---|---|---|
| Occupancy assumption | ~25% | ~45% | ~60% |
| Nightly rate (indicative) | $28 | $30 | $32 |
| Gross revenue | ~$255k | ~$493k | ~$701k |
| Operating expenses | ~$180k | ~$195k | ~$210k |
| NOI | ~$75k | ~$298k | ~$491k |
| Debt service (illustrative) | ~$110k | ~$110k | ~$110k |
| Cash flow to equity | (~$35k) | ~$188k | ~$381k |
Operating expenses cover security monitoring, utilities, bathroom cleaning, gate maintenance, insurance, property tax, and a small management allocation. Off-grid sites carry slightly higher fuel cost for the backup generator but lower utility bills overall.
Debt service assumes approximately 70% loan-to-cost at conventional commercial lending rates with a 25-year amortization. Actual financing terms move with the broader rate environment and the specific lender. Carrier anchor leases improve underwriting and can support lower-cost debt.
Six pathways. Different stages, different returns.
OTR sites can exit at multiple stages of the development cycle. Each stage has different capital requirements, different timelines, and different return profiles. Investors and partners select the exit that fits their capital horizon.
Exit 1 — Entitled site sale
Sell the entitled parcel before breaking ground. Markup over cost basis to an institutional buyer who takes the asset through construction and operations. Standard merchant builder model. Lowest absolute return per site, highest velocity, capital recycles fastest.
Exit 2 — Turnkey at certificate of occupancy
Entitle, construct, and sell at certificate of occupancy without ramping. Buyer takes lease-up risk. Sale price reflects completed facility but pre-stabilization. Returns sit between Exit 1 and Exit 3. Useful when a specific buyer wants the asset ready to operate.
Exit 3 — Built and stabilized sale
Entitle, construct, ramp to stabilization, then sell. Buyer pays cap-rate-based valuation on stabilized NOI. Indicative sale value at 8% cap on $491k NOI lands near $6M per site. Largest absolute return, longest hold, most working capital required.
Exit 4 — Build and hold
Retain the asset and distribute the cash flow. After Year 3 stabilization, indicative annual cash flow to equity runs $300k+ per site. For investors seeking recurring distributions rather than capital event, this is the natural shape.
Exit 5 — Recapitalization
Refinance the stabilized asset at a higher loan-to-value than the construction loan supported. Return original equity to investors while retaining ownership and ongoing cash flow. The asset stays in the portfolio. Most of the equity comes back.
Exit 6 — Anchor tenant buyout
If the anchor tenant carrier wants the asset for their own portfolio, OTR sells to them at a negotiated price. Less common than the institutional sale but available when the fit is strong. Often combined with a leaseback structure where OTR continues operations.
The exit decision happens late, not early. Through entitlement, the site retains optionality on all six pathways. The right exit emerges when buyer interest, market conditions, and capital partner preferences converge.
The three variables that move every number above.
Three inputs drive most of the variance in OTR site economics. Investors evaluating the model should focus underwriting attention on these three rather than the rest of the line items.
| Variable | Conservative | Base case | Aggressive |
|---|---|---|---|
| Stabilized occupancy | 50% | 60% | 70% |
| Nightly rate | $28 | $32 | $36 |
| Per-site capex | $2.1M | $1.5M | $1.3M |
| Stabilized NOI | ~$310k | ~$491k | ~$715k |
| Sale value at 8% cap | ~$3.9M | ~$6.1M | ~$8.9M |
| Return on construction cost | ~1.9x | ~4.1x | ~6.9x |
The conservative scenario still produces a multiple over construction cost. The aggressive scenario is achievable on a well-sited corridor parcel with strong carrier demand and a tight rate environment. The base case represents OTR's underwriting target.
The conversation now has numbers.
Carriers evaluating an anchor tenant lease can compare locked-rate cost against current chaotic parking spend. Equity partners can stress-test the model against their return requirements. Institutional buyers can plug the indicative NOI into their cap-rate models. The pro forma above is the input. The deal is the output.