The appetite for yield in the industrial sector is driving the investor demand for cold storage assets, from both the equity and lending community. Industrial real estate has emerged as one of the most sought-after property types by institutional investors due to historically strong market fundamentals and the boom in e-commerce. Additionally, according to Real Capital Analytics RCA , the industrial property sector was the only real estate asset class with an increase in deal volume in , a year-over-year increase of 20 percent. Increased investor demand has led to a historically low cap rate environment, leaving many investors feeling priced out of the primary coastal markets. As such, investors are expanding to secondary markets and looking at non-traditional industrial assets in an effort to deploy capital into the space. The consumer is becoming more conscious about what and how they eat.
U.S. Cold Storage Warehouse Inventory
Fulfillment center and cold storage facility proposed in Antrim Township
When you decide to open your warehouse business, the first step is to determine exactly what services you should offer. There is more to a warehouse business than shelving and equipment, you can cater to specific areas of expertise. You can offer storage services or distribution and shipping, or a combination of the two, just keep in mind what your targeted clientele will need. You will need a business plan for your warehouse, but that comes after you determine your niche and look into your competition.
2019 Cold Storage Warehouse Industry Update
What is the best warehouse distribution business to start? A warehouse can be defined as a commercial building for the storage of an assortment of goods. Many groups of people use the warehouse. Customs, manufacturers, importers, exporters, transport businesses, wholesalers make use of the warehouse in storing their products. The warehousing and distribution servicing business has proven to be a great investment to those looking for investment.
Ceiling heights. New construction. All good things. Now dominated by about 10 major players, the cold storage industry is hot, hot, hot. Rampant industry consolidation is leaving small time operators out in the cold but still thriving.