Cold storage, a niche subsector of the industrial real estate market, is heating up.
Driven by — what else — e-commerce and the pandemic, the cold-storage market was valued at $89 billion in 2018 and is projected to reach $218 billion by 2026, growing at a compound annual rate of 11.7% between 2019 to 2026, according to research by commercial real estate firm Avison Young USA Inc.
Joint venture partners Bridge Development Partners, one of South Florida’s most active industrial real estate developers, and PGIM Real Estate, the global real estate investment and financing business of Prudential Financial, Inc., announced it has secured $67 million in financing to develop Bridge Point Cold Logistics Center, a 312,103-square-foot speculative cold storage facility in Hialeah. Continue reading
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.