Values for cold-storage warehouses in the U.S. are drawing closer to those of their traditional dry-storage counterparts, indicating increased investor interest in the sector despite the unique challenges of owning and operating cold-storage facilities.
This installment of CBRE’s Food on Demand series details the opportunities and challenges of cold-storage investment. The sector will see strong demand from growth in online grocery sales, but it also faces challenges including scarcity of available assets, complexity of building and operating the facilities, expensive construction and outdated U.S. transportation infrastructure.
Most of these challenges likely can be addressed as more capital and specialized builders and developers enter the sector.
Download Food on Demand: Capital Markets Warm Up to Cold Storage to explore our in-depth assessment of the opportunities and challenges of cold-storage investment.