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.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
