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Investors are warming up to cold storage asset investment, and as a result, cap rates are pushing closer to that of high-quality warehouses, according to a report from CBRE. Los Angeles is one of the top markets for cold storage, with a 4% vacancy rate, among the lowest in the country. As a result of the opportunities in the market, cold storage has seen an influx of new capital and investors.

“The draw of strong demographics driving food sales, food safety demands putting additional focus on the cold chain and scarcity of available cold storage inventory due to the lack of speculative development has made investors more comfortable with cold storage investment,” Art Rasmussen, SVP at CBRE, tells GlobeSt.com. “Wall Street is warming up to investment in the food sector, reducing the perceived risk premium and tightening of cap rates.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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