Arcadia Cold Storage & Logistics to Build 600K SF Across 2 Facilities in Metro Chicago

Arcadia Cold Storage & Logistics, in partnership with Saxum Real Estate, is set to construct two cold storage facilities in the metropolitan Chicago area. The combined space of 600,000 square feet will accommodate over 80,000 pallet positions for frozen and refrigerated goods. While specific details such as dollar values and exact locations remain undisclosed, the first facility, expected to be 294,000 square feet, hints at the scale of both projects.

Demand Driving Factors in Chicago

Chicago's significance as a transportation hub and a central player in the food distribution industry is fueling the demand for cold storage facilities in the region, according to Arcadia Cold Storage & Logistics.

Establishment and Expansion

Established in April 2021, Arcadia Cold specializes in third-party handling, storage, distribution, and value-added services for the food industry. Despite the cost and complexity associated with developing cold storage facilities, Arcadia has pursued an aggressive expansion strategy since its inception. This strategy includes recent announcements such as plans for a facility in Charleston, S.C., and ongoing projects like the construction of a facility in Jacksonville, Fla. Additionally, Arcadia opened a facility in Sparks, Nev., in December, signaling its commitment to expanding its footprint across strategic locations.

National Cold Storage Trends

Arcadia's expansion aligns with national trends in cold storage demand. Marcus & Millichap's recent report indicates a consistent absorption of at least 3.2 million square feet of cold storage space annually over the past four years, surpassing previous averages. The geographical distribution of Arcadia's facilities mirrors population shifts in the United States, with growth observed in Arizona, Florida, and Nevada, at the expense of California and the Northeast.