The US cold‑storage sector is working off a pandemic‑era oversupply, as a construction boom during heightened demand outpaced the market, reports FreightWaves.
With demand softening post‑COVID and many new facilities coming online, vacancy rates have climbed to their highest level in two decades—about 6.9% in the fourth quarter of 2025, more than double the rate from five years earlier, according to The Wall Street Journal.
This oversupply has pressured rents and earnings, led to declines in stock prices, and made it harder for new entrants to compete. Major operators expect that a slowdown in new construction in 2026 could help rebalance the market, potentially favoring experienced firms as weaker competitors exit.
