Refrigerated warehouse buildings: An analysis of freezer and cooler warehouse buildings prospects in the Midwest.

An outline to analyzing refrigerated building real estate sales. This outline is only  for potential prospects in searching for refrigerated industrial buildings. Refrigerated industrial buildings are any industrial property that has more than 15% of the building’s floor space capable of +42° to -10° warehouse storage temperature capabilities. Generally, 75% of all refrigerated buildings  have freezer storage capabilities, and 25% of refrigerated buildings have cooler storage capabilities. I coincidence 75% of all potential prospects would need freezer warehouse storage capabilities and other 25% would need cooler warehouse space.

Transaction history on refrigerated building shows that 7 out of 10 real estate transactions are for the leasing refrigerated space, and 3 are for purchasing refrigerated buildings. The reason for so many lease transactions is that a company needs additional space for some interim period. Additionally,  in all industrial real estate transactions, 80 to 85% of sale or lease transactions are with local companies which are purchasing or leasing local building. The remaining 15 to 20% are regional or national companies that need a presence in that local market, therefore they need to purchase or lease a local building.

 An example if the cooler warehouse building was for sale in any Midwest city, then the prospect base would be 25% of the Midwest cities refrigerated food companies, and then if the building would be only for sale would leave 30% of those prospects which are "Ready, Willing and Able" to purchase a cooler building in that market being a viable candidate for the refrigerated building.

 
Jim Cronin is a refrigerated building real estate broker from St. Louis, Missouri at 314-994-0577 or e-mail J.Cronin@hawkds.com   www.refrigerated-buildings.com