There was 3.3M SF of speculative cold storage development under construction in the US in Q2 2022, which is ten times more than the pre-pandemic pipeline, which totaled only 300K SF in 2019, according to a new report from CBRE.
CBRE is projecting that demand for cold storage, which has been turbocharged during the pandemic by e-commerce sales of groceries, particularly frozen foods, will continue to be lifted by e-commerce as the online share of grocery sales grows to a projected 21.5% by 2025 from the 13% it notched at the end of 2021.
"With increased demand for perishables, cold storage capacity has been strained by transportation backlogs, inflation and labor shortages exacerbated by the pandemic. This has led to declining stock levels of primary food commodities," CBRE reported.
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