Top 10 Markets for Cold Storage Development

Roughly 26.7 million square feet of cold storage space came online across 103 properties nationwide in this time frame. This amount was 0.1 percent of the nation’s existing industrial stock, which highlights how small this niche is in the private sector. By contrast, the latest CommercialEdge industrial report revealed 283.1 million square feet of industrial space was delivered this year through September alone.

The global cold storage market was valued at more than $190 billion this year and is forecasted to grow at a compound annual growth rate (CAGR) of 17 percent through 2030, according to a Research and Markets report. Interest from investors and developers in the cold supply chain is intensifying as well, according to David Greek of Greek Real Estate Partners. We decided to take a look at what CommercialEdge data reveals about where this growth is happening and compiled a list of the top 10 markets for cold storage development, ranked by amount of space delivered over the past five years.

Still, accurately tracking the amount of cold storage space is a bit more difficult than other subclasses of industrial. Most facilities are owner-occupied and developed on a build-to-suit basis, while those that are speculative are often constructed as a shell and later outfitted by or for the tenant to specifically serve as cold storage—few of those are specifically advertised for this purpose. A significant portion of cold storage is found as a component of larger industrial assets. In other words, those facilities serve multiple purposes, not just cold storage, and are harder to identify. Lastly, there is a significant amount of cold storage space that is not found in the private sector.

Here are the top 10 markets for cold storage development in the U.S., according to construction numbers from CommercialEdge:

1. Dallas

Dallas-Fort Worth took the lead among the top U.S. metros for cold storage development. Since 2019, a total of eight such facilities were delivered—the most out of all metros on this list. These encompassed a total of 2.9 million square feet, which was 0.3 percent of the metro’s existing industrial stock.

The largest cold storage facilities were completed in 2022. Scout Capital Partners completed two properties that year, a 557,688-square-foot warehouse in Lancaster, Texas, and another, 993,912-square-foot build-to-suit asset for KeHE Distributors, in South Dallas.

That same year, Cold Summit Development completed its first project in the market, dubbed Colt Summit Dallas. The company broke ground on the 343,000-square-foot, $60 million development in 2020.

Developers broke ground on two other cold storage facilities in the Metroplex, both this year. Scannell Properties started work on a 343,000-square-foot property in North Fort Worth, while Cold Summit began construction on another, 364,306-square-foot asset in East Dallas.

The latter is Cold Summit's second such facility in the metro, expected to come online later this year. The company has another, 305,000-square-foot property in the permitting stages, also in East Dallas.

2. Denver

Denver cold storage developers added 1.9 million square feet of cold storage space across four assets since 2019, earning it the second spot. This amount was 0.7 percent of the metro’s existing industrial stock. Denver did not have any other cold storage assets break ground recently and no projects underway.

The largest of these was Shamrock Foods Co.'s 1.3 million-square-foot facility at 2999 Picadilly Road in Aurora, Colo. The food supplier acquired 116 acres of land back in 2019 for $30.9 million from Majestic Realty Co., part of a 1,600-acre master-planned park.

A more recent addition to Denver's cold storage stock was Lineage Logistics' 200,000-square-foot asset in Windsor, Colo., completed last year. Lineage developed the automated warehouse for JBS Foods within the 3,000-acre Great Western Industrial Park, owned by The Broe Group.

That same year, Lineage expanded its cold storage portfolio with a 1.3 million-square-foot acquisition from Burris Logistics.

3. Philadelphia

Philadelphia rounded out the top three markets for cold storage development, with 1.4 million square feet—0.3 percent of total industrial stock—delivered since 2019 across six projects. The metro also had an additional, 275,000-square-foot facility under construction.

This year, Dermody Properties completed a 200,640-square-foot facility in Woolwich, N.J., one of three buildings within its LogistiCenter at Woolwich industrial park, a speculative project.

The largest cold storage asset completed in the metro over the past five years was a 331,751-square-foot building at 450 Swedesboro Ave. in Mickleton, N.J. Scout Capital Partners acquired the facility in 2021 for $36.2 million.

Last year, Agile Cold Storage broke ground on a $170 million project in Claymont, Del. The project is a brownfield redevelopment of a former steel mill at 400 Naamans Road. Agile expects to complete the asset later this year. The company also has two properties in Atlanta and is planning another one in Macon, Ga.

4. Little Rock, Ark.

Although Little Rock, Ark., had only one cold storage property completed since 2019, it measures 1.2 million square feet, earning it the fourth place. This space was 1.9 percent of the metro’s existing industrial stock. Little Rock had no other cold storage construction starts since 2019 or properties underway.

Dollar General completed its 1.2 million-square-foot distribution facility in North Little Rock. The developer broke ground on the $120 million property in 2022, at Arkansas Highway 70, near an existing Amazon fulfillment center. Dollar General’s facility also includes dry storage.

Americold Realty Trust opened its 131,000-square-foot facility in Russellville, Ark., earlier this year. Although technically not part of the Little Rock market, it is just under 80 miles away from the metro.

5. Phoenix

Phoenix developers completed three cold storage properties over the past five years. These totaled 1.1 million square feet, which was just under 0.3 percent of the metro’s total industrial stock. The market also has a 155,000-square-foot property under construction.

Becknell Industrial completed the largest of these in 2020, in Goodyear, Ariz. The company developed the 470,000-square foot facility in partnership with Lexington Realty Trust for KeHE Distributors.

Last year, Ti Cold Development and BentallGreenOak completed a 318,060-square-foot cold storage facility in Phoenix’s Peoria submarket. The duo broke ground in 2021 on the asset, which is part of Copperwing Logistics Park. Arcadia Cold Storage preleased the facility last year.

6. Scranton - Wilkes-Barre, Pa.

The second Pennsylvania market on this list clocked in at number six. Scranton – Wilkes-Barre developers added a single, 1 million-square-foot cold storage facility over the past five years. This was also a speculative project used by the tenant for cold storage.

Trammell Crow Co. broke ground on Valley View Trade Center in partnership with Diamond Realty in 2018. The asset came online in 2020 and, one year later, Preylock Holdings paid $127.7 million for the two-building, fully leased Class A property, drawing on a $1.1 billion line of credit from Goldman Sachs. Amazon was its sole tenant at the time of sale.

7. Seattle

Two cold storage assets came online in Seattle since 2019, adding 966,467 square feet to the market. This amount was 0.3 percent of the existing industrial stock.

Logistics Property Co. delivered most of this space at its Frederickson Pacific Industrial Park, a 2.5 million-square-foot master planned property. Building 5 measures 1.5 million square feet, of which 862,167 square feet has been outfitted as cold storage and is leased by Amazon. The asset came online in 2022.

The company's Frederickson Pacific Industrial Park is in Pierce County, which is experiencing a surge in industrial development. In that same submarket, Crow Holdings and Panattoni secured $252 million in construction financing last year for a 2.2 million-square-foot project.

8. Memphis, Tenn.

Memphis ranked eighth among the top markets for cold storage development with a single facility completed over the past five years. It encompasses 945,000 square feet, which was 0.3 percent of the market’s industrial stock.

Associated Wholesale Grocers opened its property at 500 Kapik Industrial Road in Hernando, Miss., after consolidating two other industrial facilities. The owner-occupied building is fully automated and reportedly cost $300 million to develop.

9. Los Angeles

Los Angeles developers completed five cold storage assets since 2019, encompassing 934,739 square feet, or 0.1 percent of the market’s industrial stock. The market had no additional such developments underway as of October this year.

Arctic Cold completed the largest of these five assets, in 2022. The company brought a 576,000-square-foot facility online in Oxnard, Calif., within the Sakioka Farms Business Park. Asian food distributor JFC International completed the second-largest cold storage facility in metro Los Angeles over the past five years. It added a 170,440-square-foot asset in the Gateway Cities submarket, in 2020.

10. Atlanta

Atlanta rounded out the top 10 markets for cold storage development with just two facilities delivered over the past five years. These measure 786,555 square feet, or 0.1 percent of the market’s existing industrial stock at the time.

The largest of these was NewCold's $333 million facility in McDonough, Ga., its fourth in the U.S. The developer partnered with Conagra Brands, which uses the 442,930-square-foot property to expand its Southeast supply chain.