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Demand For Cold Storage Space To Grow By 100M SF In 5 Years, But Small Users May Be Frozen Out

Once a niche play in the industrial sector, cold-storage warehouse space is on a growth track.

The habits of U.S. consumers, who will order more food online in the coming years, is spurring the growth. A recent report by CBRE estimates there will be demand for as much as 100M SF of new cold-storage space over the next five years. That is a nearly 50% increase over its current market size of about 214M SF, since much of the food ordered online needs refrigeration at some point in the delivery cycle.

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Cold Is The Hottest New Real Estate Investment

cold storage

The growth of e-commerce has increased demand for warehouse space exponentially, but one subset of that real estate sector is really heating up. Cold storage warehouses and distribution centers are suddenly in high demand thanks to new food delivery services such as Peapod by Giant, Amazon Fresh and Blue Apron.

The sector is small now, but growing rapidly.

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