Frozen Assets, Rising Demand – Cushman & Wakefield’s Market Insight

Australia’s cold storage sector is experiencing critical undersupply, with vacancy at just 0.6% compared to a 3% industrial average. Existing stock is around 3.1 million m², yet nearly one million more will be needed in the next decade. High build costs and sector complexity restrict new supply, while 25% of facilities risk obsolescence due to age and tenant demands for automation and sustainability. Retrofitting ambient warehouses offers a partial solution. Strong demand from e-commerce, food and pharma is driving rents up 70% in five years. Investment appetite is growing, making cold storage a high-value, resilient asset class.