According to research by Savills, cold storage makes up 12% of the total UK warehousing sector.
There is a strong pipeline of additional units coming to market, with a focus on fit-out given the lack of land available.
Brexit pushed up demand from businesses that need warehouses where products – specifically food and pharmaceuticals – can be kept cold.
In 2020, CBRE GI pre-let its existing Chillbox warehouse in Thurrock, Essex, to recipe box company Gousto on a 10-year lease.
Most cold storage needs are met on a build-to-suit basis, so deals on existing, refurbished space like this show the sector is maturing.
Refurbishing stock is key to ensuring we can meet the demand for cold storage nationwide. However, it is also vital to bring ageing buildings that house cold storage up to scratch.
There could be a rise in energy inefficiency and the risk of equipment failure if you do not do so.
We’ve been the market leader for more than 30 years, so know a thing or two about embarking on a cold storage refurbishment project in an existing building.
It’s all about the space
Keeping your cold storage room running as efficiently as possible is a crucial part of any successful supply chain.
But what if you notice a downturn in freezer performance, or that you seem to be incurring higher costs for the same output?
If the building that houses your cold storage room has aged, you might need to look at refurbishing that space.
Simply put, cold storage won’t work properly in a poorly maintained or designed unit.
Both the main industrial unit and cold storage room must work in harmony to ensure you’re running as efficiently as possible.
Investing in refurbishing ageing property stock can go a long way in keeping your energy use and overall costs low.
A robust feasibility study can also help to get things moving within your budget and on your timescales.
With tough competition for brownfield land required for new-build warehouses, there is a strong argument for refurbishing existing space.
At Ambrey Baker, we can advise on the fit-out requirements needed to modernise your warehousing.