Demand for refrigerated warehouses is soaring, but there's an issue; it's getting hard to build more of it. Shortages of raw materials such as magnesium is setting back an already challenged CRE sector.
By 2027, cold storage construction is projected to reach $18.6 billion in value— or an increase of 14% each year, according to Emergen Research.
But the effort to build new cold storage facilities is being held back by rising costs of raw materials, a lack of building supplies and the global steel shortage. Europe is forecast to run out of key building component magnesium this year. China, which produces 87% of the world's magnesium, has slowed production due to rising energy costs, according to a new report by JLL.
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