Cold Storage Sector Really Pretty Hot: Newmark Reveals Temperature-Controlled Development Pipeline at New Record

By Mia Goulart, Senior Staff Writer

To say cold storage is “heating up” would be an understatement. Chicago possesses one of the largest cold storage footprints at 12.4 million square feet—and it’s expected to keep growing, led by three primary drivers: (1) e-commerce, (2) industry consolidation and (3) aging inventory, based on Newmark’s March 2023 Industrial Insight Report.

It’s no secret that the pandemic accelerated the growth of e-commerce and last-mile operations, with many consumers turning to online grocery shopping and meal services. So much so, e-commerce grocery sales are expected to grow at a 6.5% CAGR over the next five years, outpacing the 2% expected for in-store sales.

COLD STORAGE (continued on page 6)

Class B and C and The Current Industrial Market: What You Need to Know

By Mia Goulart, Senior Staff Writer

Class A industrial buildings remain the golden child of the sector, yet middle-tier buildings are also capitalizing on today’s uncertain economy. While this may bring a momentary sense of relief to these buildings’ owners and landlords, it presents challenges for potential users.

Simply, the industrial real estate market in Chicagoland is currently experiencing a shortage of available space—particularly that of Class B and C, which among other conse-

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Chicago Industrial Properties® (ISSN 1546-377X) is published bi-monthly for $59 per year by Real Estate Publishing Corporation, 1010 Lake St Suite 210, Oak Park, IL 60301. Contact the subscription department at 312.933.8559 to subscribe. © 2023 by Real Estate Publishing Corporation. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording or by any information storage or retrieval system.

2023 Editorial Board

Corey Chase Newmark

Joe Pomerenke Arco/Murray National Construction Company, Inc

Dan Fogarty Stotan Industrial

Adam Moore First Industrial Realty Trust Inc.

Ron Behm Colliers International

Adam Roth

NAI Hiffman

Mike Yungerman Opus Group

Glen Missner

The Missner Group

Dan Barrins Associated Bank

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Cold Storage Sector Really Pretty Hot: Newmark Reveals Temperature-Controlled Development Pipeline at New Record To say cold storage is “heating up” would be an understatement. Chicago possesses one of the largest cold storage footprints at 12.4 million square feet—and it’s expected to keep growing. 1

Class B and C and The Current Industrial Market: What You Need to Know Class A industrial buildings remain the golden child of the sector, yet middle-tier buildings are also capitalizing on today’s uncertain economy. While this may bring a momentary sense of relief to these buildings’ owners and landlords, it presents challenges for potential users.

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Industrial Flex Business Parks Booming in Chicago and Midwest Industrial real estate continues to be one of the most in-demand asset classes that is dominating the nation and headlines. Chicago is one of the country’s most critical industrial markets. 8

Demand, Sustainability and Automation: A Q&A with Prologis Chicago continues to be a magnet for REITs, especially for those seeking industrial space. Sean Olvany, VP, Market Officer – Chicago, recently weighed in. 11

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