Cold storage vacancy spikes
Cold storage is in a cyclical reset — vacancy hit a 20‑year high after record deliveries and softer food spending, forcing operators to consolidate networks. That creates conversion risk for specialized product and opportunity for owners with flexible, convertible spaces. (bisnow.com)
Nearly 7% of U.S. cold‑storage space was vacant at the end of 2025 — the highest level in at least 20 years — after roughly 10 million square feet of new refrigerated product was delivered during the year. (bisnow.com) Newmark reports roughly 3.5 million square feet of net absorption in 2025 even as the development pipeline moderated from prior peaks to about 5.9 million square feet, after earlier tallies showed a 7.4 million‑square‑foot elevated pipeline. (nmrk.com) The supply shock has split the market: legacy cold sites carried about a 7.6% vacancy rate while pre‑pandemic modern facilities sat near 2.7% vacant in Q4 2025, and Newmark estimates older properties accounted for roughly 73% of last year’s vacancies. (theproducewire.com) Average U.S. cold‑storage rents have climbed more than 100% since 2020, a factor driving some occupiers toward build‑to‑suit or ownership strategies as the number of small/new operators rose from roughly 1,500 in 2020 to about 1,800 by the end of last year. (nmrk.com) Consolidation is underway: industry leaders and operators told the Wall Street Journal and sector outlets that many of the newer entrants face attrition if demand softens, and several large operators expect slowed construction in 2026 to accelerate weaker competitors’ exits. (youngresearch.com) Institutional and strategic owners are eyeing conversion and modernization plays because the national cold inventory averages 42 years in age and GCCA members grew reported capacity over 10% in 2025, increasing interest in redeveloping obsolete sites into higher‑throughput, energy‑efficient assets. (nmrk.com)
