By Eric Rama, Blaine Nelson and Ramsey Meigs
Market conditions in the cold storage sector remain healthy in 2017, with strong leasing activity and rising rents. However, the large supply of cold storage space constructed over the past decade is putting older facilities at risk of obsolescence. Recent improvements in automation and efficiency are widening the gap in operating performance between newer and older cold storage facilities. We expect global demand for frozen and perishable products to continue driving demand for cold storage, but net operating income growth for older facilities will likely be pressured in the near-term.
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