As demand for temperature-controlled warehousing surges alongside growth in e-commerce grocery, pharmaceutical distribution and fresh food logistics, Brown Altman LLP published a timely new analysis authored by Founding Partner, Keith Brown, and Associate Attorney, Eileen Quinn, entitled “Unlocking Opportunity in Cold Storage Development: Legal Strategy for a High-Stakes Market.”

The article shares insights into the cold storage sector and explores how legal, land use and zoning strategies are critical to unlocking development potential in one of commercial real estate’s fastest growing sectors.

U.S. cold storage construction is projected to reach $18.6 billion by 2027, growing at nearly 14% annually.

Long Island, Westchester and Hudson Valley offer strong prospects due to their access to dense urban markets, ports and growing residential populations. However, building these highly specialized facilities, especially in these supply-constrained and regulatory-intensive regions, can be extremely challenging due to development realities and local zoning codes. Projects in these areas require more than capital and a strong tenant. They demand deep familiarity with local zoning law, environmental review procedures and community engagement.

The article highlights key market drivers, including skyrocketing demand for last-mile delivery networks, long-term lease stability and investor interest, while also identifying barriers to entry.

The report states that the Long Island region, in particular, stands out as both a high-demand and highly regulated environment. Industrial vacancy dropped to 2.7% by 2021, while rents and land

constraints continue to climb. Industrial vacancy rates have dropped and rents reached more than $13 per square foot. More than 18 million square feet of warehouse space has been proposed, with 7million square feet in the Town of Brookhaven. Yet that same town, and others like Riverhead, have responded with temporary moratoriums on projects over 100,000 square feet. 

Brown Altman’s analysis suggests cold storage could offer municipalities a balanced solution, supporting economic growth and offering tax benefits while reducing vacancy rates and offering community benefits through tenant-driven design.

“Cold storage has evolved from a niche asset into essential and critical infrastructure,” said Brown. “Success in New York’s competitive markets requires tailored legal strategy, local credibility and intimate knowledge of the development landscape, and Brown Altman is one of the few firms with industrial land use experience across all downstate counties.

“Developers often face moratoriums or outdated zoning codes that don’t reflect today’s industrial and logistics landscape,” said Quinn. “We help clients navigate those complexities, from identifying sites to managing SEQRA review, obtaining discretionary approvals, engaging communities early in the process and managing public perception, all crucial for cold storage projects.”

About Brown Altman, LLP
Brown Altman specializes in all aspects of real estate law, both residential and commercial throughout the New York Metropolitan area, including all towns, villages and cities in Nassau and Suffolk Counties, New York, New Jersey, and Connecticut.