C&W Industrial Research MarketNote: Cold Storage Industry has Experienced Continuous Growth in Overall Capacity
Growth in the cold storage industry largely depends on household income and consumer spending. With both on the upswing since the end of the recession, growth in U.S. cold storage capacity has increased by an annual average rate of 9.3% since 2008. The cold storage industry is a very specific niche within the warehouse and distribution sector, playing a key role in the food and pharmaceutical sectors. These buildings are expensive to finance, purchase, and operate. The North American inventory is controlled by only a handful of owners – nearly 50% is controlled by just five players. A majority of these assets rarely trade in part because a significant percentage of the inventory is outdated and have limited appeal to users and investors who seek modern facilities with highly specialized improvements.