September 25, 2019

The growth of online grocery sales has stoked demand for additional cold storage warehousing space in the U.S., but the cost and complexity of constructing cold storage facilities might make meeting that demand challenging. The anticipated rise in cold storage construction will spur subtle changes in how and where facilities are built.

This second report in CBRE’s Food on Demand series details the complexities of constructing cold storage warehouses and anticipated shifts in the market to accommodate increased activity. Challenges include construction costs double or triple that of traditional warehouses, longer construction lead times, significantly higher clear heights and the complexity of maintaining multiple temperature zones within the same building.

CBRE posits that ramping up cold storage construction to meet rising demand will require more spec development and the entrance of additional specialized builders and contractors into the market, among other remedies.

Download Food on Demand: Development Opportunities Heat Up to explore our deep dive into the cold storage marketplace.

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Food on Demand Series: Cold Storage Logistics Unpacked

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