Industrial real estate is currently experiencing a boom in this country, and that holds true in Texas. One of the most ripe markets for industrial real estate development is cold storage warehouse development. Multiple factors are driving demand for cold storage warehouse space: online ordering, even for perishable items, is on the rise; panic-buying during the pandemic accelerated e-commerce; and health-conscious consumers are exhibiting an interest in frozen foods not seen since the mid-1900s.
Considering that warehouses and cold storage facilities can be run more efficiently and cheaply than supermarkets, many retailers are eager to embrace the converging trends. However, cold storage facilities are costly to build (and take longer to construct, compared to a dry warehouse), discouraging speculative development. Nevertheless, it is time for the market to accelerate its response and ramp up construction in order to meet the new demands.