Many food and beverage companies seeking to increase capacity in response to consumer-driven success are finding it difficult to quickly bring new facilities online due to current market conditions and continued supply chain disruptions. The longest lead times on major materials that most in the industry have ever seen are making the construction of new buildings and building expansions especially challenging. These factors, exacerbated by shifts in consumer preferences sparked by the pandemic, are causing a number of growing food and beverage companies to retrofit existing space or build out a speculative warehouse development in lieu of traditional build to suits.
The staggering growth of cold storage facility development and construction has been sparked by a number of factors. The pandemic accelerated shifts in consumer preferences and created lasting effects on demand and delivery expectations throughout the cold storage industry, especially for companies in the grocery and direct-to-consumer spaces. In addition, supply outpacing demand has led to the majority of remaining opportunities being in existing facilities that are out of date and require significant upgrades to run efficiently and meet code requirements.