The number of cold storage establishments grew by more than triple compared from 2021 to the first half of 2022, eclipsing the annual average of 2.2% observed from 2013 to 2020, according to a new report from Newmark.
This, after also having a heady year from 2020 to 2021, spiking by 8.6%. The asset class has plenty of room to expand: cold storage development accounts for only 1.5% of the total industrial development pipeline, Newmark wrote.
Multiple demand drivers are spurring the momentum, including the explosion of food and grocery e-commerce and supportive last-mile operations, especially in the Sunbelt.
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