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Surging online grocery sales turns cold storage into a hot asset class
- December 1, 2020: Vol. 13, Number 11

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Surging online grocery sales turns cold storage into a hot asset class

by Mike Consol

Investors have fixed a cold eye upon a niche segment of the warehousing sector. Specifically, cold storage, where demand has been increasing as online grocery sales have been booming in the throes of the coronavirus pandemic.

Here’s the good news: This chilly wind blowing through investor portfolios is expected to be an abiding one, as the industrial cold-storage sector will see sustained demand for the warehousing and distribution of refrigerated and frozen food from major grocery retailers. The pandemic that forced people to shelter in place has accelerated consumers to do more online shopping, and many of those buyers have been part of a group of Americans who previously had been reticent to join the ecommerce movement, either because they were uncomfortable with technology or feared sharing credit and debit card information with systems in cyberspace. Having experienced the convenience and simplicity of online shopping, many of these newly minted shoppers are expected t

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