Investment in Asia Pacific cold storage real estate to reach $5b in next decade

Investment in Asia Pacific’s cold storage market is expected to grow fivefold in the next decade, driven by a shortage of new supply, outdated existing facilities and rapidly changing consumer demands created by the widespread adoption of online grocery shopping.

According to JLL, investment in cold storage properties in Asia Pacific is likely to reach $5 billion per year by 2032, responding to the estimated 12 percent compound annual growth rate of the wider cold chain market regionally between 2021 and 2028.

JLL analysis concludes cold storage investment lags three to four years behind more traditional logistics investments such as dry warehouses. In 2021, JLL tracked $48 billion of logistics investments in Asia Pacific. However, more detailed analysis shows capital deployment into cold storage assets was approximately $1 billion, or 4.3 percent of total investments into the sector.

For investors, barriers to entry in cold storage remain high compared to con