NAIOP’s industrial conferences are known for exceptional information from leading experts in
addition to invaluable networking. Read on for key takeaways from I.CON Cold Storage 2023, NAIOP’s
first cold storage conference.
Every industry is being challenged to reduce greenhouse gas emissions, especially with the U.S. government’s commitment to combat climate change and increase funding for these efforts. The construction industry has a considerable impact on global greenhouse gas emissions primarily due to its significant contributions to operational and embodied carbon, accounting for 28% and 11%, respectively, of total emissions.
Cold storage development often requires a specialized approach, and leasing is no exception. Five development and leasing experts closed out NAIOP’s I.CON Cold Storage in Atlanta with a look into the cold storage leasing market, demand drivers and growth expectations and the market outlook, among others.
Industrial refrigeration systems are arguably the most critical component of a refrigerated warehouse facility. The industry has evolved significantly over the past decade, and the options are vast when planning a new project or upgrading an existing system.
“Less than 2% of industrial space today is cold storage, and it probably needs to be at 15%. We’re not even in the first inning,” opened economist KC Conway in a keynote session at NAIOP’s I.CON Cold Storage. Using the analogy of peeling back an onion, Conway identified four cold storage and capital markets “layers” to “see what makes us sweat and what makes us cry.”
Understanding the many types of cold storage and controlled environments – food and beverage processing; food distribution; and public refrigerated warehousing – along with a plethora of product-specific terminologies, is the first step in diving into the world of its development. But there is much more to explore to understand the nuances of this sector.
At I.CON Cold Storage, attendees had the opportunity to hear from four very different cold storage end users who shared their decision-making criteria, key priorities and needs for cold storage facilities today. “Cold storage is far from a catchall,” noted Chris Cummings, partner with OnPace Cold. “There’s a ton of variability in terms of temperatures, design, layout and requirements for each user.”
Cold storage is a niche asset class with relatively few players compared to traditional industrial space. To share their perspectives on how investment, development and operational decisions are made for this specialized asset class, five experts took the stage at NAIOP’s I.CON Cold Storage this week in Atlanta.
Earlier this year NAIOP Wisconsin was made aware that the City of Wauwatosa was looking to fast-track the adoption of a transportation utility user charge or fee (TUF) in order to generate additional revenue for local transportation and infrastructure needs. The transportation utility fee would apply to both residential and commercial properties based on the vehicle traffic generated by the property’s use, and not necessarily their valuations.
“[Artificial Intelligence] won’t replace real estate people. AI will replace real estate people who don’t have AI,” said Itay Ron, senior president of Northeast markets at Faropoint at the I.CON East conference this week in Jersey City, New Jersey. “Right now, we are reaching an inflection point where you can easily use data for commercial real estate,” Ron continued, discussing the state of artificial intelligence technology and how commercial real estate professionals can utilize AI in their investments.
