en.Wedoany.com Reported - Vertical Cold Storage recently acquired a cold storage warehouse in Dothan, Alabama, from Dothan Warehouse for an undisclosed amount. This marks the company's second temperature-controlled facility acquisition in the town in two years. The first warehouse primarily serves the poultry industry, while the new facility focuses on peanut shelling and storage. Dothan is located in the heart of the U.S. peanut-producing region.
This acquisition comes at a market juncture where cold storage vacancy rates are at historic highs. A report released by commercial real estate services firm Newmark shows that the U.S. cold storage vacancy rate has reached its highest level in 20 years. Financial performance among leading companies remains bleak: Americold's revenue increased 0.1% year-over-year to $629.9 million (down 1.9% on a constant currency basis), with a net loss of $13.6 million; Lineage Logistics posted a net loss of $51 million for the quarter, with revenue growth of less than 1% to $1.3 billion. Americold CEO Rob Chambers noted that the company's performance exceeded expectations, emphasizing that "our team remains focused on pricing discipline, cost control, and delivering quality service to our customers."
Rapid expansion driven by the COVID-19 pandemic has led to absorption lagging behind capacity growth. According to Lineage data, available space grew by 15% in the fourth quarter of 2025, while demand increased by only 5%. Newmark's report indicates that high food prices continue to weigh on demand, squeezing consumer budgets and slowing consumption growth. The report's authors stated that weak consumer sentiment, heightened uncertainty, and significant volatility have suppressed category growth and impacted purchasing patterns, resulting in slower-than-expected volume recovery and higher-than-expected costs.
Warehouse operators and their clients continue to grapple with high costs, largely attributable to Washington's tariff policies and the resulting inflation. A survey by Lineage of 1,000 food and beverage industry clients confirms this. According to Newmark data, average cold storage rents have risen by over 100% since 2020.
On the positive side, the facility development pipeline has shrunk to its lowest level in 20 years. Newmark analysts believe the market is at a turning point, expecting future demand to outpace capacity expansion, despite cost pressures. In Lineage's client survey, 72% of respondents indicated that demand for refrigerated and frozen food is growing.
Newmark analysts point to online grocery shopping as a primary driver of cold storage capacity demand, with the sector growing 32% last year and home delivery relying more heavily on the cold chain than in-store shopping. Additionally, cold chain demand from the growing pharmaceutical industry, along with population growth in regions such as Dallas/Fort Worth, is driving up demand for cold storage facilities.
Newmark's report warns that while cold storage executives anticipate more favorable market conditions, improvement will take time to materialize. In the short term, supply will continue to outpace absorption as current projects under construction are completed. For owners and operators of older cold storage infrastructure, the wait may be even longer. Data shows a clear divergence between modern and older warehouses: in the final quarter of 2025, the vacancy rate for modern buildings was 2.7%, compared to 7.6% for traditional warehouses. Last year, 73% of vacant space came from older buildings.
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