Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

COLD STORAGE: DEMAND DRIVERS Urban populations are requiring higher refrigerated storage volumes for food, drink

• Growing urban populations will require more extensive supply chains for many products including food, beverage and pharmaceuticals. Demand for these perishable goods is a core driver for cold storage space in the US. • The last mile requirements for e-commerce, and specifically e-grocery, will further heighten cold storage demand and push asset locations in some cases to be closer to urban cores. Burgeoning consumer preferences for ready to-eat (RTE) meals, specialty alcohol and high quality produce all have added to cold storage requirements. • The need for chilled pharmaceutical products, particularly in the wake of the pandemic, have also created another demand pool for cold storage capacity. • As average global temperatures rise, warmer climates near the Sunbelt will face increasing pressure to expand their capacity for cold storage.

Demand for Frozen Goods Rising

Cubic Volumes Have Begun to Rise Again

4.3

1800

4.2

1600

4.1

1400

4

1200

3.9

1000

3.8

800

$ Billions

3.7

600

3.6

400

3.5

200

3.4

0

3.3

2011 2013 2015 2017 2019 2021 2023 US Refrigeration capacity (gross cubic sf)

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Food & Drink Location Sales Grocery Store Sales Health, Pharmacy, Personal Care Sales

Source: Moody’s Analytics, Statista, Cushman & Wakefield

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