Roughly 26.7 million sq. ft of chilly space for storing got here on-line throughout 103 properties nationwide on this timeframe. This quantity was 0.1 % of the nation’s present industrial inventory, which highlights how small this area of interest is within the personal sector. Against this, the most recent CommercialEdge industrial report revealed 283.1 million sq. ft of business area was delivered this 12 months by way of September alone.
The worldwide chilly storage market was valued at greater than $190 billion this 12 months and is forecasted to develop at a compound annual development charge (CAGR) of 17 % by way of 2030, in keeping with a Analysis and Markets report. Curiosity from buyers and builders within the chilly provide chain is intensifying as effectively, in keeping with David Greek of Greek Actual Property Companions. We determined to check out what CommercialEdge knowledge reveals about the place this development is occurring and compiled a listing of the highest 10 markets for chilly storage growth, ranked by quantity of area delivered over the previous 5 years.
Nonetheless, precisely monitoring the quantity of chilly space for storing is a little more troublesome than different subclasses of business. Most services are owner-occupied and developed on a build-to-suit foundation, whereas these which can be speculative are sometimes constructed as a shell and later outfitted by or for the tenant to particularly function chilly storage—few of these are particularly marketed for this function. A good portion of chilly storage is discovered as a element of bigger industrial belongings. In different phrases, these services serve a number of functions, not simply chilly storage, and are tougher to determine. Lastly, there’s a vital quantity of chilly space for storing that isn’t discovered within the personal sector.
Listed below are the highest 10 markets for chilly storage growth within the U.S., in keeping with building numbers from CommercialEdge:
1. Dallas
Dallas-Fort Value took the lead among the many prime U.S. metros for chilly storage growth. Since 2019, a complete of eight such services had been delivered—probably the most out of all metros on this checklist. These encompassed a complete of two.9 million sq. ft, which was 0.3 % of the metro’s present industrial inventory.
The biggest chilly storage services had been accomplished in 2022. Scout Capital Companions accomplished two properties that 12 months, a 557,688-square-foot warehouse in Lancaster, Texas, and one other, 993,912-square-foot build-to-suit asset for KeHE Distributors, in South Dallas.
That very same 12 months, Chilly Summit Improvement accomplished its first venture out there, dubbed Colt Summit Dallas. The corporate broke floor on the 343,000-square-foot, $60 million growth in 2020.
Builders broke floor on two different chilly storage services within the Metroplex, each this 12 months. Scannell Properties began work on a 343,000-square-foot property in North Fort Value, whereas Chilly Summit started building on one other, 364,306-square-foot asset in East Dallas.
The latter is Chilly Summit’s second such facility within the metro, anticipated to return on-line later this 12 months. The corporate has one other, 305,000-square-foot property within the allowing levels, additionally in East Dallas.
2. Denver
Denver chilly storage builders added 1.9 million sq. ft of chilly space for storing throughout 4 belongings since 2019, incomes it the second spot. This quantity was 0.7 % of the metro’s present industrial inventory. Denver didn’t have some other chilly storage belongings break floor not too long ago and no initiatives underway.
The biggest of those was Shamrock Meals Co.’s 1.3 million-square-foot facility at 2999 Picadilly Street in Aurora, Colo. The meals provider acquired 116 acres of land again in 2019 for $30.9 million from Majestic Realty Co., a part of a 1,600-acre master-planned park.
A more moderen addition to Denver’s chilly storage inventory was Lineage Logistics’ 200,000-square-foot asset in Windsor, Colo., accomplished final 12 months. Lineage developed the automated warehouse for JBS Meals inside the 3,000-acre Nice Western Industrial Park, owned by The Broe Group.
That very same 12 months, Lineage expanded its chilly storage portfolio with a 1.3 million-square-foot acquisition from Burris Logistics.
3. Philadelphia
Philadelphia rounded out the highest three markets for chilly storage growth, with 1.4 million sq. ft—0.3 % of whole industrial inventory—delivered since 2019 throughout six initiatives. The metro additionally had a further, 275,000-square-foot facility below building.
This 12 months, Dermody Properties accomplished a 200,640-square-foot facility in Woolwich, N.J., one in every of three buildings inside its LogistiCenter at Woolwich industrial park, a speculative venture.
The biggest chilly storage asset accomplished within the metro over the previous 5 years was a 331,751-square-foot constructing at 450 Swedesboro Ave. in Mickleton, N.J. Scout Capital Companions acquired the power in 2021 for $36.2 million.
Final 12 months, Agile Chilly Storage broke floor on a $170 million venture in Claymont, Del. The venture is a brownfield redevelopment of a former metal mill at 400 Naamans Street. Agile expects to finish the asset later this 12 months. The corporate additionally has two properties in Atlanta and is planning one other one in Macon, Ga.
4. Little Rock, Ark.
Though Little Rock, Ark., had just one chilly storage property accomplished since 2019, it measures 1.2 million sq. ft, incomes it the fourth place. This area was 1.9 % of the metro’s present industrial inventory. Little Rock had no different chilly storage building begins since 2019 or properties underway.
Greenback Common accomplished its 1.2 million-square-foot distribution facility in North Little Rock. The developer broke floor on the $120 million property in 2022, at Arkansas Freeway 70, close to an present Amazon achievement middle. Greenback Common’s facility additionally consists of dry storage.
Americold Realty Belief opened its 131,000-square-foot facility in Russellville, Ark., earlier this 12 months. Though technically not a part of the Little Rock market, it’s just below 80 miles away from the metro.
5. Phoenix
Phoenix builders accomplished three chilly storage properties over the previous 5 years. These totaled 1.1 million sq. ft, which was just below 0.3 % of the metro’s whole industrial inventory. The market additionally has a 155,000-square-foot property below building.
Becknell Industrial accomplished the biggest of those in 2020, in Goodyear, Ariz. The corporate developed the 470,000-square foot facility in partnership with Lexington Realty Belief for KeHE Distributors.
Final 12 months, Ti Chilly Improvement and BentallGreenOak accomplished a 318,060-square-foot chilly storage facility in Phoenix’s Peoria submarket. The duo broke floor in 2021 on the asset, which is a part of Copperwing Logistics Park. Arcadia Chilly Storage preleased the power final 12 months.
6. Scranton – Wilkes-Barre, Pa.
The second Pennsylvania market on this checklist clocked in at quantity six. Scranton – Wilkes-Barre builders added a single, 1 million-square-foot chilly storage facility over the previous 5 years. This was additionally a speculative venture utilized by the tenant for chilly storage.
Trammell Crow Co. broke floor on Valley View Commerce Heart in partnership with Diamond Realty in 2018. The asset got here on-line in 2020 and, one 12 months later, Preylock Holdings paid $127.7 million for the two-building, totally leased Class A property, drawing on a $1.1 billion line of credit score from Goldman Sachs. Amazon was its sole tenant on the time of sale.
7. Seattle
Two chilly storage belongings got here on-line in Seattle since 2019, including 966,467 sq. ft to the market. This quantity was 0.3 % of the present industrial inventory.
Logistics Property Co. delivered most of this area at its Frederickson Pacific Industrial Park, a 2.5 million-square-foot grasp deliberate property. Constructing 5 measures 1.5 million sq. ft, of which 862,167 sq. ft has been outfitted as chilly storage and is leased by Amazon. The asset got here on-line in 2022.
The corporate’s Frederickson Pacific Industrial Park is in Pierce County, which is experiencing a surge in industrial growth. In that very same submarket, Crow Holdings and Panattoni secured $252 million in building financing final 12 months for a 2.2 million-square-foot venture.
8. Memphis, Tenn.
Memphis ranked eighth among the many prime markets for chilly storage growth with a single facility accomplished over the previous 5 years. It encompasses 945,000 sq. ft, which was 0.3 % of the market’s industrial inventory.
Related Wholesale Grocers opened its property at 500 Kapik Industrial Street in Hernando, Miss., after consolidating two different industrial services. The owner-occupied constructing is totally automated and reportedly price $300 million to develop.
9. Los Angeles
Los Angeles builders accomplished 5 chilly storage belongings since 2019, encompassing 934,739 sq. ft, or 0.1 % of the market’s industrial inventory. The market had no further such developments underway as of October this 12 months.
Arctic Chilly accomplished the biggest of those 5 belongings, in 2022. The corporate introduced a 576,000-square-foot facility on-line in Oxnard, Calif., inside the Sakioka Farms Enterprise Park. Asian meals distributor JFC Worldwide accomplished the second-largest chilly storage facility in metro Los Angeles over the previous 5 years. It added a 170,440-square-foot asset within the Gateway Cities submarket, in 2020.
10. Atlanta
Atlanta rounded out the highest 10 markets for chilly storage growth with simply two services delivered over the previous 5 years. These measure 786,555 sq. ft, or 0.1 % of the market’s present industrial inventory on the time.
The biggest of those was NewCold’s $333 million facility in McDonough, Ga., its fourth within the U.S. The developer partnered with Conagra Manufacturers, which makes use of the 442,930-square-foot property to broaden its Southeast provide chain.
