What type of cold storage occupiers need today may result in changes for builders of the facilities, the occupiers, corporate bottom lines, and ultimately consumers when they seek the once stored cold/frozen items on their grocery store shelves.
Why is this happening now? According to an interview between Colliers Capital Markets and Rick Kingery, senior vice president and leader of Colliers' Food & Beverage practice group, it's because of a typical reason: supply and demand. In this case, industrial vacancies are low and rents at such facilities are at record highs.
The second key question is what can occupiers do? In many cases when they realize that cold/frozen space in the size and configuration they want is unavailable in the exact location they favor, they can look for other choices, which may also influence builders of these facilities. Altogether, five key changes may take place in this niche that industry participants should be aware of:
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