National cold storage development hit an all-time high of 9.8 million square feet by the end of 2022, driven by a proliferation of users and operators as the sector grows and evolves, according to Newmark. The number of cold storage establishments grew 8.6 percent from 2020 to 2021 and an additional 7.5 percent from 2021 to the first half of 2022, eclipsing the annual average of 2.2 percent observed from 2013 to 2020, according to Newmark’s report Sold on Cold: Temperature-Controlled Development Pipeline Reaches New Record.

Driving the chill are a few factors, according to Newmark: aging inventory, industry consolidation, and acceleration of food and grocery ecommerce and supportive last-mile operations, particularly in fast-growing Sun Belt metros.

The average age of cold storage facilities in the top U.S. markets is 37 years, presenting challenges due to inefficient systems that generate higher operating costs and increased risk for product spoilage. Dema