The U.S. cold storage sector is undergoing a cyclical reset as a recent wave of new development collides with softer food inventories and more cautious consumer spending, according to Newmark. While vacancy has risen in the near term, underlying demand remains positive, with approximately 3.5 million square feet of net absorption recorded in 2025.
The report finds the current adjustment is sharpening a divide within the sector. Modern, high-throughput facilities continue to attract demand, while aging legacy assets are experiencing rising vacancy and tenant move-outs. This “flight to quality” is being driven by occupiers prioritizing automation, energy efficiency and operational scale, trends that are expected to define the next phase of the market.
Elevated costs are also reshaping occupier strategy. Average cold storage rents have more
