Refrigerated Warehouse -versus- Refrigerated Public Warehousing Services

Refrigerated Warehouse - versus - Refrigerated Warehousing.

There often is some confusion between the meaning of  what Refrigerated Warehousing and a Refrigerated Public Warehousing Services refers to. The two have come are sometimes synonymous. However, there is very distinct difference between refrigerated buildings and public refrigerated warehouse services. One describes a certain type of industrial real estate facility. The other describes a portion of a logistics activity.

A refrigerated warehouse is a term that is used in the industrial real estate industry. It is a warehouse or perhaps a distribution center that has all or a portion of its’ floor space capable of maintaining plus 40° Fahrenheit to minus 20°F storage temperatures. A refrigerated warehouse is a building where a company keeps its’ own inventory of refrigerated products in storage that will be shipped from that company’s building at some later date. The national average size of a refrigerated building is a total facility footprint of 35,000 ft.². There are refrigerated buildings as small as 10,000 ft.² and as large as 600,000 ft.²

Refrigerated warehousing is a distribution or logistics activity rather than real estate. Refrigerated warehousing is where a company will store for another company industrial product(s) that requires refrigerated or frozen storage. A refrigerated warehousing company is in the business of providing warehousing and storage services for food processors or food distributors that require warehousing services. These warehousing activities generally entail receiving of the product, storing the product for some period of time and then shipping the product back out of the warehouse. Sometimes the refrigerated warehousing company will provide added value services such as case picking or repackaging of the food products that require refrigeration.

The refrigerated warehousing company provides temporary solutions to that corporations that occupy their own refrigerated warehouse building. A refrigerated warehouse company is able to keep refrigerated product when a refrigerated building owner cannot hold any additional inventory at their own refrigerated building. Also there are situations where it makes sense for a food distributor or food processor to contract with or employ a refrigerated warehouse warehousing company rather than purchase or lease another refrigerated building and then staff it with its own personnel.

Hawk Distribution Services, LLC http://www.hawkds.com/ thoroughly understands the difference these often confused terms. Contact Jim Cronin, a real estate broker at 314-994-0577 or e-mail of j.cronin@hawkds.com  to confidentially discuss whether using public refrigerated warehousing or acquiring a the refrigerated facility is the best option for your company.