According to a report from Colliers, as the existing current cold storage supply inventory is leased out and the demand for modern, multi-zoned, and convertible temperature-controlled facilities increases, speculative cold storage projects are expected to recover.
Class B Industrial assets account for 53.5% of the total U.S. industrial inventory, or 10.7 billion square feet. Their appeal to attract a broad range of businesses has grown in the wake of declining vacancy rates and surging rental costs after 2021.
Panattoni Development Co. plans to demolish the existing structure and build two industrial buildings totaling 153,654 square feet, along with 171 parking spaces. The proposed buildings will each cover 76,827 square feet and feature a 36-foot clear height.
Industrial space rents across the U.S. have shown an upward trend at the start of the year. However, the sector faces challenges that are posing a threat to the bright spot in commercial real estate.
The world’s largest industrial developer and landlord announced a spike in warehouse leasing activity following the U.S. November election, which has improved the company’s outlook for warehouse demand in 2025.