Growth in demand for cold storage warehouses

Growth in demand for cold storage warehouses

The growth in internet sales has resulted in increased demand for warehouse space over the last 10 years. Although this growth continues, it is at a lower rate in 2019 than previously, except for one segment of industrial warehouse space—cold storage warehouses.

This type of warehouse is used to store food (and some medications) that require special environmental conditions, such as refrigeration, humidity control and/or freezing temperatures.

Several trends have increased demand for cold storage warehouses: The farm-to-table movement that bypasses distribution through grocery stores or distributors; increased online purchases of fresh foods; and organic farming. All require cold storage warehouses to preserve the freshness of the food.

In addition to increased demand for cold storage warehouses, they are increasingly needed closer to population centers for quicker delivery and lower transportation costs.


By the way, did you know that warehouse space for e-commerce companies is needed not just for merchandise, but a substantial amount is needed for items that are returned? While returns to brick and mortar stores typically are less than 10%, returns of online purchases can be 20, 30, even 40%. E-commerce retailers need warehouse space for all those returns.

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