Chicago Leads the Way in Cold Storage Development

The Chicago area is witnessing a significant increase in cold storage development due to factors like population growth, e-commerce expansion, and aging infrastructure. These modern facilities are essential for preserving temperature-sensitive goods, ensuring a reliable supply of fresh food and vital products.

Key Projects in the Region

Karis Cold’s Historic Facility Karis Cold is constructing a 100,000-square-foot facility in Chicago’s historic Stockyards district. This innovative $30 million project will use advanced technology to maintain temperatures as low as -10 degrees Fahrenheit, ensuring the quality of perishable goods. The facility will feature unique construction materials, systems, and public artwork.

Alston Construction’s Major Project In Plainfield, Illinois, Alston Construction, in partnership with Barber Partners, is developing a 389,880-square-foot freezer storage facility. This project includes cutting-edge technology, such as an ALTA Expert refrigeration system and a glycol under-floor heating system. It aims to cater to a variety of cold storage needs with support offices for multiple tenants.

Chicago’s Strategic Advantages

Chicago is a crucial industrial and food manufacturing hub. The city’s strategic location offers access to major transportation networks and skilled labor in the Midwest. This makes it an ideal spot for developing temperature-controlled spaces, which are vital for the restaurant and retail supply chains.

Impact of E-Commerce and Pandemic

The pandemic has significantly boosted e-commerce, especially in the grocery sector. This shift has led to increased demand for cold storage facilities as grocery footprints evolve and restaurants adapt to new consumer behaviors.

Addressing Aging Infrastructure

The average cold storage building in the U.S. is over 40 years old, leading to obsolescence due to stricter food safety regulations and advances in technology. Companies like Alston and Karis are responding by investing heavily in new, more efficient facilities across the country, including nearly $1 billion in various markets.

Technological Advancements

Modern cold storage facilities, like those being built by Karis and Alston, emphasize energy efficiency and advanced refrigeration technology. Taller buildings maximize storage capacity and reduce energy costs, benefiting both operators and consumers.

Industry Challenges and Future Outlook

The industry faces the challenge of balancing development to avoid overbuilding speculative projects. However, projections indicate a continued need for new cold storage facilities. Hiring qualified teams with expertise in cold storage construction is crucial for success.

Positive Economic Impact

The new Karis facility in Chicago is expected to create jobs and provide redundant infrastructure for the local food supply, benefiting the community. With experienced developers like Karis Cold and Alston Construction leading these projects, Chicago is well-prepared to meet the increasing demand for temperature-controlled storage, ensuring a steady supply of essential goods for the future.