Cold Storage is Heating Up
Digested from Multi Housing News
As cold-storage space shifts from retail stores to warehouses and distribution centers over the next decade, apartment managers must prepare.
In a new report, CBRE predicts that an increase in online grocery sales could result in an increased demand of as much as 35 million square feet of U.S. cold-storage space shifting from retail stores to warehouses and distribution centers within the next seven years.
The analysis by CBRE, “found greater concentrations of food-grade, cold-storage facilities occur in states with substantial agricultural production, large populations or both,” writes Multi-Housing News’ Keith Loria. “CBRE estimated California as having the most industrial cold-storage space [nearly 400 million], followed by Washington state [271 million), Florida [260 million], Texas [231 million] and Wisconsin [228 million].”
This trend has two impacts on apartments.
The more immediate impact for onsite teams will be even more packages to deal with. And these packages will need to stay cold. Amazon’s purchase of Whole Food only expedites this trend.
“With the Amazon partnership with Whole Foods, it makes a lot of sense to provide cold storage going forward, so residents can also have grocery delivery,” says Vanessa Siebern, a vice president at FPI.
The other is that after years of apartments being the favored asset class of REIT investors, industrial is now providing stiff competition.