Lesson Tag: IND200TX-BR

• The surge of interest in the cold storage space has been fueled by the growth in e-commerce and the online ordering of food. 
• Retrofitting an existing property to meet cold storage requirements can be nearly as costly as building from scratch.  

• Despite its recent growth, cold storage remains a specialized sector with unique challenges. 
• Over the past three years, the cap-rate gap between cold storage and traditional warehouses has narrowed from 200 basis points to 75. 
• Transaction volume for U.S. cold storage facilities has increased at an annual rate of 6.2% since 2014. 
• Historically, there have not been many institutional investors interested in the cold-storage sector. That has changed recently though. 

Key Points

• $98.1-billion Global Market 
• Proper Facilities Planning 
• Dry, temperature-regulated and frozen storage operating environments.