Cold Storage Continues to Take Center Stage in Pandemic

The pandemic, which created a massive disruption in the food industry, has buoyed ongoing demand for U.S. industrial cold storage space, according to a CBRE report. COVID accelerated the need for this type of space as e-commerce grocery was more widely adopted, and restaurants offered more delivery and take-out options that require cold storage capacity.

This is especially true in Phoenix which boasts a full-bodied transportation infrastructure, and long-established logistics and warehousing sectors, making it a prime location for food delivery.

“Food innovation is a rapidly growing sector in Phoenix,” said Christine Mackay, Phoenix community and economic development director. “Consumer demand requires innovative and technologically advanced facilities to quickly get product to market.”

Beyond the normal takeout and delivery, Millennials are taking it a step farther by seeking out organic/fresh food deliveries in quicker timeframes.

“There are several drivers of the cold storage market today, one of the primary ones being the shift in consumer demand especially among Millennials,” says CBRE’s Cooper Fratt. “Consumer demand for fresher, healthier and organic food options with rapid delivery solutions will undoubtedly continue to grow and with it, the demand for cold storage facilities.”