Cold storage and grocery goods are in high demand, and industrial real estate developers are taking notice. Undoubtedly, the need for cold storage and grocery goods is rising. The demand for cold storage and grocery goods is being met by an influx of new refrigerated industrial warehouses built by real estate developers. By the end of 2022, it is expected that there will be a significant increase in the number of these warehouses across the country. This expansion in capacity will be vital in meeting the needs of grocers working to provide cold storage goods in rising quantities.
Why is Cold Storage on the Rise?
Several reasons exist behind consumer demand for cold storage and grocery goods. First, as the world becomes more globalized, there is an increasing need to transport perishable goods long distances. This has led to more warehouses that can store these items at a constant cool temperature. The popularity of online grocery shopping has also contributed to the need for more cold storage facilities. During the pandemic, grocery stores adapted to the times, offering online ordering, curbside pickup, grocery delivery, and a surge of frozen foods. However, to provide these grocery services, grocers needed more cold storage. In quarter four of 2022, markets are still seeing a rise in the need for refrigerated storage space, even amid rising inflation.
What This Means For Businesses Who Rely on Cold Storage
A recent study found that 78% of cold storage warehouses are over 20 years old, with the average warehouse being 42 years old.
If your business relies on cold storage, the increased demand could mean more modern facilities will be available to meet your modern grocery needs. In addition, more facilities could lead to industrial cold storage, lower prices for renting space, and shorter wait times to access the facility being built.
The competition among industrial real estate developers has also begun to lead toward improved features and amenities in architectural design. In other words, automated storage and retrieval systems and increased real estate options drive more efficient cold storage warehouses.
Tenant Per Development Numbers
In 2020, construction started on 83 new cold storage warehouses totaling 18 million square feet of space. Of those 83 warehouses, 29% were pre-leased—the highest recorded percentage. This indicates that industrial developers are confident they will be able to find tenants for their new warehouses. In 2022, industrial developers will continue building cold storage warehouses as they need space. Only about ⅓ of the cold storage facilities have tenants as of the second quarter of 2022. However, developers are confident that refrigerated industrial real estate will still be in high demand in the coming years.
McMurray Stern’s Cold Storage Automated Solutions Driving Refrigerated Warehouse Efficiency
There’s no denying that the pandemic has caused a shift in consumer shopping habits. Consumers look specifically for convenience, speed, and shipping options as they shop for groceries. McMurray Stern offers solutions for your grocery store that will help automate processes to meet your consumer’s demands. From pallet, case, and piece-picking, to modular storage and distribution and cold chain storage solutions, our automated cold storage solutions are helping keep warehouses optimized, efficient, and accurate.
Contact us to learn more: https://mcmurraystern.com/free-consultation/