U.S. retailers are going to need more fridge space
Younger generations are buying more fresh food online, and it is prompting an increasing demand for refrigerated warehouses.
According to a report by real estate brokerage CBRE, reported by the Los Angeles Times, in order to keep pace with the increase of online shopping, the U.S. will need 100 million square feet of new cold storage warehouse space over the next five years. This is in part because consumers are increasingly demanding alternative methods to chemical food preservatives, such as refrigeration.
Fed by demand from Amazon.com and other e-commerce operations, the warehouse business has been growing at a rapid pace, according to the Times. Last month, investment manager Blackstone Group said it would pay $18.7 billion to buy a network of U.S. industrial warehouses from Singapore-based GLP, reported to be the largest private real estate transaction in history.
To read the Los Angeles Times article, click here.