COVID-19 Accelerating Demand for Cold Storage Warehouses

Thanks for following! This is Episode 14 of our Industrial Real Estate Podcast. We are discussing the accelerating demand for cold storage facilities after the Covid-19 pandemic. You can read the entire article in our blog:

https://www.warehousesmarket.com/blog

 

Cooler Warehouses are Hot!  Demand for cold storage has been increasing over the last few years and now this pandemic has accelerated this trend. Studies suggest that an additional 75 – 100 million SF of refrigerated space will be needed. Here are a five trends to look for in this sector:

1. Exponential growth of E-commerce Grocery delivery
2. Public Warehouse Consolidation. Existing Cold Storage companies merging.
3. Fulfillment centers inside retail Big Box retail shops.
4. Shift is restaurant from dine into delivery and pick up. No need for retail.
5. Automation will make facilities more efficient. Specially in land supply constraint sites. Higher building with less need for personnel.

 

We are also seeing Investment Funds adding cold storage facilities to their portfolios. It’s an 180 degree turn from a few years ago when they showed no interest in these facilities. Our team recently completed the sale of two large (157,000SF and 80,000SF) cold storage facilities, fully leased, here in South Florida.

 

Featured Property: 12707 Le Jenue Rd 10,000 – 81,000SF. Refrigerated space Available for Lease at $13/SF.

 

Industrial Tip: If you own your refrigeration equipment and the landlord wants you to remove it after lease expiration, then you could find another company to take over your equipment and they can sign a new lease with your landlord. You can advertise the space for sublease with your broker and that way find a company to take over.

 

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www.WarehousesMarket.com

 

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