Research

Asia Pacific | November 2023

jll.com

Cold chain, unlocked

The cold storage opportunity in Asia Pacific
Contents

01 02 03

Cold storage real estate 101 → A rapidly growing sector → The investment upside →

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Key takeaways

1 Cold storage real estate is evolving

The evolving complexities of logistical
needs are changing cold storage
3 Macro and industry demand
drivers are strong
Global disruptions have emphasised the
requirements. Cold storage facilities will importance of robust supply chains and the
increasingly need multiple temperature essential role of cold storage real estate.
zones, an expanded number of doors and Relatively inelastic demand, changing
bays (to facilitate fulfilment), and dedicated consumption patterns, and the rise of
areas for services such as packing zones. e-commerce are boosting demand for
efficient cold chain logistics.

2 Rising asset creation

The global cold storage sector has
expanded from 550 million cubic metres 4 Attractive investment factors
Investor interest is shifting towards
in 2014 to an estimated 785 million cubic alternative and higher-yielding asset
metres in 2022. Assuming the same growth classes. Stable cash flows, higher barriers to
rate, the market is projected to exceed 1.1 entry, technological advancements, longer
billion cubic metres by 2030. lease terms, yield premiums, portfolio
diversification, and attractive risk-adjusted
returns contribute to the attractiveness
of the cold storage sector in the current
investment landscape.

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What’s the opportunity?

Development Growth Investment

Facility/product differentiation Food and pharmaceuticals Investing in cold storage offers

to become best-in-class are the two largest product resilient and stable returns.
providers of cold storage real groups in cold chain logistics. With both higher rental rates
estate. Having the capacity to Growth expectations are robust and yields when compared
leverage advanced technology for these two industries. With to traditional logistics and
and sustainable practices, online sales growth exceeding industrial (L&I) real estate, cold
and being able to implement offline growth, operators, storage assets can provide
energy-efficient systems, investors, and developers an attractive destination
insulation, and renewable should target manufacturers for capital in the current
energy sources will be key and producers that have higher investment climate.
differentiating factors for exposure to e-commerce
developers and owners. There platforms and networks.
is also opportunity to adapt
facilities to meet changing
logistical requirements.

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

01
What is cold storage?
Cold storage facilities are a vital component
of the entire cold chain process. Simply, these

Cold storage facilities are where temperature-sensitive goods

are stored before they are transported along the
cold chain journey to the final destination, which

real estate 101 is usually the end consumer. Through this cold
chain process, products are transported and
stored in a consistent and temperature-controlled
environment, of which cold storage real estate
plays a critical role.

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Figure 1
The cold chain journey – Ice cream

Storage freezer in Storage freezer in Storage in Consumer

manufacturing plant central warehouse retail outlet home freezer
(-22°C, 2 weeks) (-24°C, 4 weeks) (-15.6°C, 1 week) (-12°C, 1 week)

Vehicle from plant to Vehicle from warehouse Consumer vehicle from

central warehouse to retail outlet retail outlet to home
(-19°C, 16 hours) (-19°C, 3 hours) (room temperature, 0.5 hours)

Source: JLL
Note: Temperature and travel times will differ depending on locations.

Taking ice cream as an example product in the

cold chain journey, the recommended storage
temperature for ice cream is -27°C or below1, but
fluctuations in storage freezer temperatures can
lead to textural defects. This typically occurs when
the product warms during the transition between
freezers. Prolonged warming can result in the
loss of air and settling of sugar syrup, causing
ice crystals to grow and altering the texture
of the product.

1. Australian Alliance for Energy Productivity (2017)

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Figure 2
Cold storage temperature brackets

Ultra low Frozen Refrigerator Cold Cool

-70°C to -40°C -40°C to 0°C 0°C to 4°C 4°C to 8°C 8°C to 15°C

• Pharmaceuticals • Meat • Meat • Meat • Fruits

• Vaccines • Fish • Pharmaceuticals • Fish/seafood • Vegetables
• Vegetables • Vaccines • Dairy
• Pharmaceuticals • Fruits
• Vaccines • Vegetables
• Ice-cream • Baked goods
• Flowers
and plants

Source: JLL, 2023

Ensuring a consistent temperature throughout the

cold chain, therefore, is critical in ensuring that the
quality of ice cream is maintained.

Ice cream is just one product type that requires

cold storage real estate. However, there is a wide
range of products that need to be maintained
at low-ranging temperature conditions. These
temperature conditions differ based on product
type (Figure 2).

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Evolution of cold storage facilities changes need to be incorporated into how

Cold storage facilities typically require higher buildings are designed and into the operational
specifications than standard (or ‘dry’) distribution strategies of operators.
centres due to their specific function. While
standard facilities are becoming increasingly ESG requirements are also increasingly being
sophisticated with greater integration of incorporated into cold storage real estate to
technology and automation, cold storage facilities promote sustainability and reduce environmental
pose additional challenges. The complexity impact. For example, more facilities are being
of refrigeration, including building design and designed with insulation, efficient refrigeration
labour working conditions, along with the systems, and LED lighting to optimise energy
increased risk to temperature-sensitive products, efficiency. Additionally, renewable energy
make cold storage facilities more capital- and sources such as solar panels are being integrated
management-intensive. to power these facilities. Water conservation
measures, waste reduction strategies, and the use
Further, increasingly complex logistical of environmentally friendly refrigerants are also
requirements are driving changes in how cold being implemented to create more sustainable
storage facilities are being utilised. These cold storage solutions.

Figure 3
How cold storage services are evolving

Single temperature Multiple temperature Multiple temperature

+ fulfilment + fulfilment
+ value-add services
• Product types - limited
• Management intensive – low • Product types - multiple
• Real estate needs - limited • Management • Product types - multiple
(shell for one temperature intensive - medium • Management intensive - high
level, few doors/bays) • Real estate needs - • Real estate needs - high (shell
• Client base - narrow medium (shell for multiple for multiple temperature
temperature levels, levels, more bays/doors,
more bays/doors) additional areas for packing
• Client base - wide and other services)
• Client base - wide
Source: JLL, 2023

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Real estate prerequisites

Cold storage real estate sector falls under the
umbrella of industrial real estate, which in itself
broadly comprises logistics and manufacturing.
Cold storage is a more specialised component
of the logistics sector, designed specifically

Figure 4
Cold storage typical real estate requirements

Criteria Requirement Importance

• 3km radius to major infrastructure nodes Mid

Location
• Depends on traffic performance

• Reinforced concrete construction High  

• Limit condensation • Impacts stored goods and
• Better sealing building design
Building structure
• Steel construction
• More cost-effective
• Shorter construction period

• Higher the ceiling clearance, higher the return on High  

investment (4.5m to 6m for maximum pallets) • More important for
Clearance and loading • Structural loading requirement is higher than dense urban cities  
traditional warehouses • Loading factor not high for
ground-level sites

• 0°C to 6°C degrees (above freezing) - Airlock , High

normal sprinklers • For rooms below -5°C,
Air-conditioning and • -15°C to 0°C - Airlock pre-action or gas type fire
fire suppression compressor, pre-action system compression is required  
• -15°C and below - Airlock compressor type, • Utilise R448A refrigerant as it
gas suppression/in-rack system contains less HFC, vs R134A

• Two requirements - resiliency and provision High  

• N+1 (100% backup is a general standard) – • Stable power supply
Power provision provides security for metro areas
• Power supply for MVAC/freezer commands • Genset will be required for areas
80-90% of total power loading with less power stability

• Best case is truck to door access Mid  

Loading / unloading • Lifts can compensate for multi-storey sites • Lift size and loading capacity is a
determining factor for high floors

Source: JLL, 2023

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

to meet the storage and distribution needs of

What’s the development opportunity?
perishable goods. Given this specialisation, its
Incorporating advanced technology,
real estate requirements and the importance of
automation, and sustainable practices is
each requirement can differ significantly when
driving changes in the sector. This presents
compared to standard L&I facilities.
opportunities for differentiation and for
developers and investors to become industry
For example, traditional warehouses with 40-
leaders in cold storage real estate.
foot ceiling heights are not conducive to efficient
refrigeration because the square footage of the
For instance, there are real opportunities to
roof introduces heat from solar energy, increasing
leverage advanced technology and sustainable
the load on the refrigeration system. Additionally,
practices in cold storage facilities. Implementing
there may be an opportunity to increase the pallet
energy-efficient systems, insulation, and
capacity of a building footprint by 12% to 25%
renewable energy sources can help reduce
by raising the clearance height to 11 metres, up
environmental impact and operational costs.
from 10 metres.
Additionally, incorporating automation and
digital solutions can improve operational
efficiency and streamline processes.

Further, as the cold storage industry evolves,

there is an opportunity to adapt facilities to meet
changing logistical requirements. This could
include designing facilities to accommodate
additional distribution models, such as
e-commerce and last-mile delivery.

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

02
The criticality of cold storage will spur
growth
The global cold storage sector has expanded

A rapidly rapidly in the past decade, growing from around

550 million cubic metres in 2014 to an estimated
785 million cubic metres by 2022. This reflects

growing sector a 4.5% compound annual growth rate (CAGR).

Assuming this same CAGR, the market will grow
to more than 1.1 billion cubic metres by 20302.
Despite strong potential growth, this is arguably a
conservative estimate.

More capacity may be needed given the structural

changes in consumption patterns and the shift
to online spending. Global disruptions have also
highlighted the criticality of the cold chain sector.
These factors have and will continue to have long-
term demand implications for the amount of cold
storage space needed, how they are designed and
operated, and where they are located.

11 2. Source: GCCA, Statista, JLL, Q3 2023

Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Robust market growth translates to rising capacity Macro and industry forces
on a per capita basis. In 2014, global capacity per Rising interest in the cold storage sector is
capita was just 0.07 cubic metres. Assuming current underpinned by the structural growth drivers of
population projections3 and historical CAGR cold the market. Global disruptions highlighted the
storage capacity growth, global capacity per capita importance of resilient supply chains, and the
will almost double to 0.13 cubic metres by 2030. vital role cold storage real estate plays in these
networks. Changing consumption patterns and the
Capacity levels differ significantly in APAC. movement towards e-commerce has led to a surge
Generally, the more advanced economies have in the need for efficient cold chain logistics and
greater capacity relative to more emerging parts more cold storage real estate.
of Asia. This is unsurprising given that logistics
networks in these countries tend to be more The primary cold storage real estate growth drivers
sophisticated and institutionalised. According are illustrated on page 13, divided between general
to the World Bank’s Logistics Performance Index macroeconomic growth determinants and more
(LPI) 2023, Singapore ranked 1st, Japan came specific industry growth determinants.
in 13th, while South Korea ranked 17th globally.
Australia and China both ranked 19th. Emerging
South-East Asian countries are much further
down the rankings. Figure 6
Refrigerated warehouse capacity in cubic
metres, per urban resident
Figure 5
Global cold storage capacity 0 - 0.2 0.2 - 0.4
(million cubic metres) Indonesia India
1,200 Philippines Japan
1,100 Vietnam Australia
Million cubic metres

1,000 China
900
800
0.4 - 0.6 0.6 - 0.8
700
South Korea New Zealand
600
United States Great Britain
500
2014

2016

2018

2020

2022

2024

2026

2028

2030

Source: GCCA, Statista, JLL, Q3 2023

2022-2030 estimates based on historical CAGR of 4.5% Source: GCCA, 2020

3. The UN expects the global population to reach 8.5 billion by 2030

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Macroeconomic determinants

Rising GDP growth Expanding population

• Asia Pacific GDP is forecast to grow by 3.9% in • Between 2023 and 2025, Asia Pacific’s
both 2023 and 2024, higher than the 3.2% in population will rise by an annual average of 27
2022, before accelerating further to 4.5% in 2025. million people. This is equivalent to adding a
new Australia every year to the region over the
• Asia Pacific’s economy will be 73% larger than next three years.
Europe’s by 2025. They were a similar size in
2010. Similarly, Asia Pacific is forecast to be 43%
larger than the US by 2025.

Emerging middle class and growing Growing e-commerce market

consumption • E-commerce is a positive tailwind for
• Asia Pacific’s substantial middle-class consumption-driven demand. Globally, the
population coupled with rapid economic growth e-commerce penetration rate grew from 14% in
and rising income levels are expected to support 2019 to 20% currently. This figure is forecast to
rising consumption levels. Private consumption rise to 24% by 2026, meaning that e-commerce
in Asia Pacific rose by a robust CAGR of 4.1% sales will make up close to a quarter of total
between 2013 and 2022. This is forecast to global retail sales within the next three years.
accelerate to 4.7% between 2023 and 2025.

Source: JLL - Q3 2023, IMF World Economic Outlook - April 2023

Oxford Economics - May 2023, eMarketer, Statista - July 2023

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Industry determinants

Higher e-grocery adoption Food and beverage delivery

• The COVID-19 pandemic helped shift consumers • The number of users of online food delivery
to online grocery shopping. In Asia, revenue services in Asia Pacific is forecast to rise from
from grocery delivery more than doubled 1.6 billion in 2022 to 2.5 billion by 2027. This will
between 2019 and 2022, rising from USD 92 support cold storage demand through greater
billion to USD 269 billion. While the pace of inventory needs, expansion of delivery radius,
growth has slowed, revenue is projected to and greater last-mile delivery services.
increase to USD 453 billion by 2025, reflecting
a CAGR of 19.1%.

Developing life sciences market Increasing logistical needs

• The pharmaceutical market is a key growth • The global 3PL market (by spending) was
driver of cold storage real estate. Ageing valued at USD 556.4 billion in 2022. Asia Pacific
populations require more pharmaceuticals, is the largest regional 3PL market, accounting
biotechnology products, medical devices, and for about one-third of the global market. The
other temperature-sensitive goods. The rise of market is expected to increase by a CAGR of
direct-to-patient models has also increased the 4.9% between 2023 and 2027, well ahead of the
need for more cold storage facilities. US (2.1%) and Europe (2.2%).

Source: JLL - Q3 2023, IMF World Economic Outlook - April 2023

Oxford Economics - May 2023, eMarketer, Statista - July 2023

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Market snapshots
Australia

Australia’s large geographic size and long supply of industries, from the pharmaceuticals industry
chains make cold storage real estate strategically to food and beverage. There’s also been more of
important, particularly in key logistics hubs and a recent shift towards more energy-efficient and
major cities. The market has expanded in recent environmentally-friendly solutions.
years, supported by growing demand from a range

Sydney Melbourne

Rent premium to 50%-100% 50%-100%

general logistics rent

Lease term 10 years 10 years

Market yield premium to 50-100 bps 50-100 bps

general logistics

Source: JLL, Q3 2023

Note: Real estate metrics are high-level market averages. Actual asset level metrics may differ, depending on lease
covenant, asset quality and location, amongst other factors

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Market snapshots
Greater China

Mainland China Hong Kong SAR

Historically, secondary grade assets accounted Mostly strata units, with only around 11 en-bloc
for the majority of total stock in China, and they cold storage facilities. The costs of the converting
were primarily constructed by end-users such as an industrial unit to cold storage unit will typically
food producers. In recent years however, to meet be borne by the tenant or operator. Investors
emerging demand for fresh food e-commerce would generally prefer to partner with an operator
and pharmaceutical companies, more developers before acquisition.
have started to build prime-grade facilities. In
addition, some cold storage operators have
started to convert dry warehouses into cold chain
warehouses to meet local demand.

Shanghai Beijing Hong Kong

Market size ~1.0 million sqm ~0.6 million sqm ~0.6 million sqm

Rent premium to ~100% ~100% ~50%

general logistics rent

Lease term 1-3 years for end users; 1-3 years for end users; 10 years
5-10 years for operators 5-10 years for operators

Market yield premium ~50 bps ~50 bps ~10 bps

to general logistics

Source: JLL, Q3 2023

Note: Real estate metrics are high-level market averages. Actual asset level metrics may differ, depending on lease
covenant, asset quality and location, amongst other factors

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Market snapshots
North Asia

Tokyo Seoul
Most facilities are owner-occupied, although 3PL groups, e-commerce players, and F&B tenants
there is increasing leasing activity as more are the main occupiers of the cold storage space.
developments for lease become available. Existing Due to a smaller pool of tenants compared to
cold storage operators are small in scale and that of dry storage, leasing demand has slowed in
cannot drive rapid market expansion. A catalyst for recent quarters. An added headwind is the large
greater growth is if major 3PL companies enter the amount of existing and upcoming supply. Core
cold chain business. investors are reviewing assets on a selective basis.

Tokyo Seoul

Market size 3.2 million sqm 3.7 million sqm

Rent premium to 100% 50-100%

general logistics rent

Lease term 5-10 years 2 years

Market yield premium to 25-75 bps 100 -150 bps

general logistics

Source: JLL, Q3 2023

Note: Real estate metrics are high-level market averages. Actual asset level metrics may differ, depending on lease
covenant, asset quality and location, amongst other factors

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Market snapshots
Southeast Asia

Ho Chi Minh City Jakarta

Owner occupiers and cold storage specialists are Most cold storage facilities are domestic owner-
key developers, although the market is still in its occupier groups/cold chain players. Most demand
infancy. Typically, developers must have expertise is from 3PL groups who have a contract directly
in both cold storage and cold chain operations. In with the end-user, and who typically provide an
general, the South and Mekong Delta markets are end-to-end service.
more active than the North given larger annual
export and import volumes.

Ho Chi Minh City Jakarta

Market size ~150,000 sqm ~350,000 sqm

Rent premium to 200-300% 100 – 200%

general logistics rent

Lease term 1 year Case by case, but up to 10 years

Market yield premium to 100-150 bps 100-250 bps

general logistics

Source: JLL, Q3 2023

Note: Real estate metrics are high-level market averages. Actual asset level metrics may differ, depending on lease
covenant, asset quality and location, amongst other factors

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

What’s the growth opportunity? to capture growth in these industries is large.

To better understand this growth potential (i.e. Below are two charts which shows CAGR across
from an estimated 785 million cubic metres in these industries in APAC countries. Given
2022 to 1.1 billion cubic metres by 2030), it’s the outsized online sales growth compared
important to understand the underlying drivers. to offline, it’s clear that operators, investors,
Food is generally considered the dominant and developers should target manufacturers
product in this expanding sector, followed and producers that have higher exposure to
by pharmaceutical goods. The opportunity e-commerce platforms and networks.

Figure 7
Consumer spending – Food & beverage and pharmaceutical 2023-2027 CAGR % by country

Food & beverage Pharmaceutical

12.0% 16.0%

10.0% 14.0%
12.0%
8.0%
10.0%
6.0%
8.0%
4.0%
6.0%
2.0% 4.0%
0.0% 2.0%
-2.0% 0.0%
India
Philippines
Malaysia
Vietnam
New Zealand
Australia
Singapore
Thailand
Indonesia
China (mainland)
Japan
Hong Kong (SAR)
South Korea

India
Philippines
Malaysia
Vietnam
Indonesia
China (mainland)
Australia
New Zealand
Thailand
Hong Kong (SAR)
Singapore
Japan
South Korea

Online Offline Online Offline

Source: JLL, Oxford Economics, Q3 2023

Note: Based on e-commerce penetration rates and forecast industry growth; Food & beverage excludes alcoholic drinks, pharmaceutical includes medicines
and appliances.

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

03
Why invest in cold storage?
The more challenging investment environment
is directing investor interest towards more

The investment alternative and higher-yielding asset classes,

including the cold storage sector. The challenges

upside
faced in delivering perishable vaccines during the
COVID-19 pandemic and the subsequent food
shortages have emphasised the criticality of robust
refrigerated infrastructure. This makes cold storage
assets a relatively resilient sector.

This resiliency is an attractive consideration for

many investors. It mitigates risks in an increasingly
volatile and uncertain investment environment.
Other criteria considered by investors include:

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Greater stability Attractive leasing covenants

• The essential nature of perishable goods and • Rents are typically higher than standard
sticky demand for them irrespective of economic L&I facilities, while lease terms are also
conditions translates to stable cash flows. generally longer.

Higher barriers to entry Yield premium

• Investing in the cold storage sector requires • Cold storage assets typically attract a 50-100
understanding unique complexities associated bps4 higher yield when compared to standard
with temperature-controlled environments, L&I facilities. This can be a critical factor in
logistics, and regulatory compliance. This investment decisions in the current higher
can act as a competitive advantage for interest rate environment.
knowledgeable investors, while creating a
barrier to entry for other investors.

Technological upside Diversification

• Advancements in automation, robotics, and • The cold storage sector can provide investors
energy efficiency can significantly enhance the with portfolio diversification and attractive risk-
operational efficiency of cold storage facilities. adjusted returns.
These can help reduce operator/occupier
costs as technology improves, making them
more resilient.

4. Depending on the market and asset, the range could be higher or lower

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Will investment activity rise?

Transactional activity in the cold storage sector
has slowed in the past 12 months. Higher
interest rates and subsequent rising capital
costs are making real estate investments
generally less attractive investment propositions
across all sectors.

Volumes peaked for both distribution and cold

storage centres in 2021, though the spike in cold
storage is much more pronounced. Not only was
the 2021 average price higher than normal (USD
29.6 million vs USD 19.1 million 10-year average),
but the number of major deals reached a record
32 transactions, more than double the 15 annual
deals on average over the past 10 years.

Figure 8
APAC distribution centre vs cold storage centre transaction volumes
30,000 1,000
900
25,000 800
USD millions

USD millions

20,000 700
600
15,000 500
400
10,000 300
5,000 200
100
- -
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H23
Distribution centres Cold storage centres (RHS)

Source: RCA, JLL, Q2 2023

* Forecast for 2023

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Investment managers drove much of the Similar to general L&I sector trends, more asset
investment activity in the past few years. creation in the past two years has supported
Investment managers were the largest net buyers, investment levels. This is reflected in developers
allocating USD 436.4 million net between 2021 and operators selling down their holdings on a
and H1 2023. Part of this is explained by managers net basis over this same period as they looked to
over-subscribing to the L&I sector more broadly recycle capital back into their operations.
and the need to allocate capital, including to cold
storage real estate. In addition to rising supply, adding further
impetus to investment demand are smaller ticket
Real estate investment trusts (REITS) were also net sizes. Between 2013 and 2022, cold storage deals
buyers over the same period. Many REITs prioritise averaged USD 19.2 million. General distribution
the stable income stream, longer lease terms, and centre deals by comparison averaged USD 48.3
diversification benefits offered by the cold storage million over the same period. With many groups
sector, allocating USD 322.4 million net over the less willing/unable to invest in the current
same period. This focus on stability is driven by environment, the ability to allocate capital in
their need to meet distribution requirements, smaller tranches and into a more alternative
maintain portfolio and valuation stability, and and higher-yielding sector (in conjunction with
ensure access to capital markets for financing. greater asset creation) may support cold storage
investment activity.

Figure 9
APAC cold storage buyers and sellers (2021-H1 2023)

500,000,000
400,000,000
300,000,000
200,000,000
USD millions

100,000,000
-
-100,000,000
-200,000,000
-300,000,000
-400,000,000
-500,000,000
REIT

Undisclosed

High net
worth

Corporate

Bank

Equity fund

REOC

Sovereign
wealth fund
Developer/
Owner/
Operator

Investment
manager

Buyer Seller

Source: RCA, JLL, Q2 2023

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Cold chain, unlocked: The cold storage opportunity in Asia Pacific Contents →

Figure 10
APAC cold storage average deal size (USD millions) and ratio to the distribution centre
average deal size

120%
Ratio to distribution centre average deal size

100%
35.5
80%
24.8
60%

40% 18.4 29.6

19.9
10.4
12.6 12.1 15.8 16.3
20% 12.0

0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Cold storage centres

Source: RCA, JLL, Q2 2023
Bubble size reflects average annual deal size in USD

What’s the investment opportunity? Given the increasing demand for cold storage
Investing in cold storage presents a compelling space, underpinned by relatively inelastic
opportunity for resilient and stable returns. underlying demand, cold storage assets can
Cold storage assets typically generate higher deliver robust financial performance. This asset
rental rates and investment yields, making cold class can also provide greater stability and
storage an attractive destination for capital in resilience in investment portfolios.
the current investment climate where hurdle
rates remain elevated.

24
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Research authors Research at JLL

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