China Cold Storage Investment Guidelines

With the COVID-19 pandemic having fueled the growth of China’s stay-at-home economy, the last few years have seen a sharp increase in online grocery sales. This has spurred rapid growth by leading online grocery platforms, which in turn has had a strong knock-on effect on demand for cold storage. CBRE data show nationwide cold storage leasing volume doubled in 2020 compared to that for 2019. The strong growth potential for cold storage in China is drawing more investors to the sector, with CBRE’s 2021 China Investor Intentions Survey finding that 38% of respondents named cold storage as their preferred alternative sector, a substantial increase on last year’s 20%.

Compared to dry warehouses, the construction, operation and management of cold storage is more complicated and requires higher capital expenditure. Within the cold storage segment, there exist a number of different types of facilities, some of which may offer more attractive prospects for investors than others. When considering investment in cold storage, factors such as city, location, size, quality, and function all play a key role in determining investment returns. This report by CBRE identifies the optimal investment opportunities, strategies and locations for cold storage investment in China and is designed to serve as a guide for investors, service providers and occupiers seeking to access this rapidly growing sector.