Hot Year Ahead for Cold Storage

The 200,000-square-foot Prologis distribution center is located in Phoenix.

PHOENIX—Industrial experts in the Phoenix office of JLL are predicting a very hot year for cold storage space, defined as industrial buildings that cater to food and beverage users. Traditionally, this category of space combines office/back office product with industrial-grade, climate controlled areas for freezer, cold storage and dry storage activity.

“There are more than a dozen food and beverage users actively looking in our market right now for cold storage space, but this is very specialized inventory that is expensive to build and it is never developed on a speculative basis,” said JLL managing director Anthony Lydon. “That makes it challenging for tenants in the market to find space that is just the right size, with just the right mix of amenities to meet their needs. It is a signature proposition.”