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News release


JLL Industrial Experts Predict a Hot Year for Phoenix Cold Storage Space

Demand from food and beverage users is outpacing available inventory

PHOENIX, April 27, 2016 – Industrial experts in the Phoenix office of JLL are predicting a very hot year for Phoenix cold storage space – which is defined as industrial buildings that cater to food and beverage users. Traditionally, this category of space combines office/back office product with industrial-grade, climate controlled areas for freezer, cold storage and dry storage activity.

“There are more than a dozen food and beverage users actively looking in our market right now for cold storage space, but this is very specialized inventory that is expensive to build, and it is never developed on a speculative basis,” said JLL Managing Director Anthony Lydon. “That makes it challenging for tenants in the market to find space that is just the right size, with just the right mix of amenities to meet their needs. It is a signature proposition.”

Among these amenities are larger floorplates, modern 32- to 36-foot clear height ceilings and state-of-the-art cooling/freezer mechanical systems offering variable climate control for different food stuffs within different areas of the facility. Cold storage buildings also offer thicker, vented floors under the freezer area floor slab and chilled cold docks that eliminate any breaking of the “cold chain” throughout the supply chain.

“These buildings are so specialized to an occupier’s needs that, once they’re built, the user tends to stay in place for 15 to 30 years,” said JLL Managing Director Marc Hertzberg.

According to JLL's Q1 2016 Phoenix Industrial Insight report, large users with buying power – and particularly those with specialized needs – are finding design-build options more and more attractive. For food and beverage users, a lack of available space will only further feed that trend.

For instance, Michael Lewis Company is building a 380,000-square-foot, 40-foot clear height freezer/cooler/dry warehouse in Goodyear, Arizona that will fulfil food services to airports throughout the Southwest. The building will have the most efficient cooling/freezer systems available, combined with modern roof and wall system insulation.

McLane Foods is another example of a food-grade employer who recently completed a new facility in Phoenix with a significant expansion of floor space, higher ceiling clear height and best-of-class cooling, insulation and sustainability designed into the building. “These types of uses demand extreme levels of power and energy, and therefore must have the newest in facility and mechanical design,” said Hertzberg.

“Cold storage users represent almost 3 million square feet of current industrial space demand in Phoenix. Unfortunately, the Valley currently has little, if any, available modern chilled space. This will lead to more newly constructed space solutions for this sector,” said Lydon. “As the Valley continues its robust demographic growth, and more and more cold storage operators seek space solutions, it will require many of them to do exactly what others have done before them: Take the build-to-suit route and organically build from the ground up.”

For more information from JLL’s Q1 industrial market reports, visit

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit

In Phoenix, JLL is a market leader employing more than 540 of the region’s most recognized industry experts offering office, industrial and retail brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services. In 2015, the Phoenix team completed 17.2 million square feet in lease and sale transactions valued at $930 million, directed $125 million in project management and currently manages a 16.4 million-square-foot portfolio. For more news, videos and research resources on Jones Lang LaSalle, please visit or