2A — January 17 - 30, 2020 — M id A tlantic
Real Estate Journal
www.marej.com
UPCOMING features SPOTLIGHTS
Mid Atlantic Real Estate Journal
Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Section Publisher ............................................. Steve Kelley Section Publisher ............................................... Kim Brunet Editor/Graphic Artist ......................................Karen Vachon Office Manager ............................................... Kerrin Devine Contributing Columnist .................... Steven Beyda, CBRE Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 32, Issue 1 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 www.marej.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
781.740.2900 Special Advertising Rates to All Participating Firms! Contact Joe Christman or your Account Rep JChristman@marejournal.com FEBRUARY 14 .........................................DEADLINE: JAN. 24 ROP (FRONT SECTION) ......................................... FINANCIAL DEL/MAR/VA .............................................................................. NEW JERSEY ..................................................... CENTRAL NJ PHILADELPHIA .............................. CENTRAL & WESTERN PA SPOTLIGHT......................PROPERTY MANAGEMENT JANUARY 31 ............................................DEADLINE: JAN. 21 ROP (FRONT SECTION) .......................................................... RETAIL DEVELOPMENT REIMAGINED................................... ODM................................... LANDSCAPE SERVICE & DESIGN SPOTLIGHT..............ECON. DEV. & 2020 FORECAST
Steven Beyda
Cold Storage Gaining Favor With Investors
S ADDLE BROOK, NJ — Investors increas- ingly are warming up to the U.S. cold storage ware- housing sector, pushing cap rates for class A facilities closer to those of traditional high-quality warehouses. In New Jersey, online grocery sales continue to spur the need for construction and investment in cold storage facilities. However, cold stor- age presents its own unique challenges, according to a new report from CBRE. CBRE’s report, the third and final installment in its Food on Demand series about cold storage, outlines how trends such as the anticipated growth of online grocery sales have narrowed the gap in cap rates between cold storage warehouses and dry-storage facilities to 75 basis points (bps) from 200 bps in the past three years. Cap rates, formally called capitalization rates, measure a property’s annual income
as a percentage of its price. A lower cap rate indicates a higher price. CBRE forecasts that the cap-rate spread be- tween U.S. cold storage real estate and dry storage could narrow further to 25 bps, on par with the spread in leading Asia Pacific markets, as cold- storage cap rates go lower. “The increased demand by consumers for online bever- age and groceries has been the impetus for more cooler/ food storage space in New Jersey, one of the most well- located gateway markets serving millions of shoppers in the U.S.,” said Steven Bey- da, senior vice president with CBRE Advisory & Transac- tion Services. “The trend of online ordering, as well as the
investment in new delivery strategies and technologies, will continue to drive demand for cold storage space well into 2020 and beyond.” However, challenges stem- ming from the specialized nature of the sector will continue to restrain ad- ditional growth in transac- tion volume. CBRE’s report points out that available properties are scarce, con- struction is expensive, and the design and operation of these facilities is complex. These challenges are likely to be addressed gradually by growth in the ranks of specialized developers and builders of cold storage as well as additional capital flowing into the industry.
Kaplin Stewart At t o rney s a t Law Business and Corporate Law - To the point! Experience Counts. Count On Us.
Contact: NEIL A. STEIN • nstein@kaplaw.com • www.kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422 • 610-941-2469 Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120
KSAd8X8.5DDixonPencil.indd 1
7/18/19 11:41AM
Made with FlippingBook - Online Brochure Maker