U.S. Cold Chain Warehouse Market Soars to $39.6 Billion in 2025
- CUPS Realty
- Oct 3
- 2 min read
The U.S. cold chain market is booming. In 2025, it’s valued at $46.47 billion, and by 2032 it’s projected to exceed $104.75 billion, with a 12.3% CAGR.
No wonder cold chain logistics has become the new obsession of investors.
Why is the cold chain so valuable?
The most obvious reason is rent. Nationwide, cold storage rents average 52.7% higher than standard industrial properties ($12.81 vs. $8.39 per sq. ft). In Los Angeles and Orange County, the rent premium still reaches nearly 48.3%. For the same footprint, a cold storage facility can generate over 50% more rental income.
Vacancy tells the same story: U.S. cold storage vacancies average just 3.6%, far below the industrial average of 6.4%, signaling long-term undersupply and higher returns.
So the big question is: why do cold chain logistics and cold storage stand out among all industrial sectors? And can investors still profit despite high energy use and construction costs?
What Drives Cold Chain Logistics?
Food & Pharma: Americans consume over 220 lbs of meat and 20 lbs of seafood per capita. Vaccines and biologics demand ultra-stable frozen storage.
E-commerce: Online grocery and meal delivery fuel the rise of urban micro cold storage for faster last-mile service.
The Challenge: High Cost, High Risk
Cold storage isn’t risk-free. These facilities consume enormous amounts of electricity to maintain low temperatures year-round. Construction costs are typically double that of standard warehouses, and maintenance plus energy bills (especially in high-cost states like California) eat into margins.
Without energy management, higher rents can be quickly offset by soaring power bills. Operators now explore solar rooftops, smart temperature systems, and government incentives to control costs.
Hotspots & Capital Flow
Southern California: Largest market with 396.5M cu. ft. capacity; supply tight, demand intense. In 2025, Agile Cold Storage invested $55M in Vernon for a new cold storage park.
Texas & Georgia: Strong ports, fast population growth, heavy cold chain investment.
Investor Takeaways
Lock in long-term food & pharma tenants.
Treat energy costs as core budget.
Pick sites near ports, farms, and cities.
Cold storage is capital-heavy but trend-proof—patience pays.
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