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Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification Copy Copy

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification Copy

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.

Identity Verification Live – IDECC

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You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number to take the final exam.

Identity Verification Live

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number to take the final exam.

Identity Verification Live

You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number to take the final exam.

How would a COVID-19 vaccine affect the cold storage market?

Video Time: 4:07

It depends on what temperature it needs to be stored at. If it needs to be stored at 38 degrees then most dry buildings can be retrofitted to store that. If it needs to be at negative 70 degrees, then that’s a totally different animal. Vaccines need to be stored at a wide variety of different temperatures.  The economics become difficult depending on how long we will need to hold vaccines and how low of temperatures they need to be held at.  

When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.

What are some of the risk factors?

Video Time: 5:07

 From an environmental and safety standpoint you might have an ammonia issue. That is a dangerous substance. There is also a risk, from an operational standpoint, that certain pieces of equipment might not work. ‘What happens when new systems come out and become more efficient?’ Although systems last for as long as 30 years, what happens when a new upgrade comes out that is more efficient than your equipment? The biggest risk is how can landlords backfill facilities once tenants leave? 

When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.

What are the Specs and Costs of Cold Storage?

Video Time: 8:52

A lot of it is land costs and a lot of it is availability of utilities. Not every piece of property is conducive to large power or sewer consumption.  As markets become hot, cold storage can afford to pay a bit more because the land is a smaller cost of the overall facility.  It’s similar, there’s just a bit more risk. The big difference from an investor standpoint is that dry is well known. The cold storage spec idea is no different than when investors were talking about doing spec industrial deals 5-10+ years ago.  Traditionally, the equipment will last for around 30 years. New systems now have smaller motors that you can replace parts on.  One of the important elements of cold storage buildings is the height. Because you can refrigerate a 50-foot-tall building for the same cost as you can refrigerate a 40-foot-tall building.  

When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.

Geographically, What’s Driving Cold Storage Demand?

Video Time: 8:51

A lot of the existing cold storage assets are antiquated. There are low ceiling heights as well as inefficient equipment.  Demand is difficult to quantify.  There is actually shrinking supply. From 2015 to 2018 there was an 18 or 20% drop in inventory. Many times, cold storage facilities get converted to dry storage when equipment becomes antiquated.  All of the food coming through the supply chain is going through cold storage facilities.  From a COVID-19 standpoint, companies like Instacart and GoPuff are delivering directly to consumers from industrial cold storage warehouses. It is difficult to have all components (cold, dry and frozen) go directly to consumers. 

When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.

The Hot New Asset Class

Time of Video – 3:55 

With cold storage now representing a $98.1- billion market globally and compound annual growth of 12.1% projected through 2025, it’s safe to say this specialized subset of industrial has made its way into the spotlight. It’s also valid to ask whether a new real estate asset class is forming.  

Hear from industry experts regarding the increased demand for climate-controlled cold storage space that is not only weathering the pandemic but experiencing unprecedented growth due to consumer preferences towards fresh products and online grocery deliveries. 

When the video ends, a quiz will appear below. Take the quiz to proceed to the next lesson.

Cold Storage Experts Drill Down into a Hot Sector

  • The surge of interest in the cold storage space has been fueled by the growth in e-commerce and the online ordering of food. 
  • Retrofitting an existing property to meet cold storage requirements can be nearly as costly as building from scratch.  

Investors Warm Up to Cold Storage Deals

  • Despite its recent growth, cold storage remains a specialized sector with unique challenges. 
  • Over the past three years, the cap-rate gap between cold storage and traditional warehouses has narrowed from 200 basis points to 75. 
  • Transaction volume for U.S. cold storage facilities has increased at an annual rate of 6.2% since 2014. 
  • Historically, there have not been many institutional investors interested in the cold-storage sector. That has changed recently though.