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Cold Storage Warehousing in the Texas Triangle is in Hot Demand
The demand for cold storage facilities within the Texas Triangle—a region encompassing the bustling cities of Austin, Dallas-Fort Worth, Houston, and San Antonio—is skyrocketing. This rise is driven by key industries such as e-commerce, biotech, and technology, which require specialized, temperature-controlled environments. The region’s ongoing population growth and robust economic output make the Texas Triangle a hotbed for cold storage development as businesses seek strategic locations to support expanding logistical needs.
E-commerce has transformed how goods are bought and sold, and with this shift comes the challenge of storing and distributing perishable and temperature-sensitive products. As more consumers turn to online grocery shopping and pharmaceutical purchases, retailers and logistics companies invest heavily in cold storage facilities. These specialized warehouses ensure that products like fresh food, medications, and vaccines are stored and transported optimally, making them critical to the modern supply chain.
In addition to e-commerce, the biotech and pharmaceutical sectors are significant contributors to the rising demand for cold storage. The Texas Triangle, with its strong presence in life sciences—particularly in cities like Austin and Houston—has become a key location for these industries. As the development of life science buildings such as BillionToOne’s 220,000 SF medical diagnostic facility and the $2.5B investment for both the University of Texas at Austin’s medical center and the UT MD Anderson Cancer Center continue to rise, so does the future demand for temperature-sensitive medical products. Companies need reliable cold storage to safeguard product integrity, from vaccines to biologic drugs. These industries depend highly on facilities maintaining precise temperature controls, further driving the need for cold storage space.
Cold storage leases also come with higher rental rates, reflecting both the specialized nature of these spaces and the growing demand. With fewer available properties offering the necessary infrastructure for cold storage and the cost to run and maintain these facilities, landlords are commanding premium rents. This trend shows no sign of slowing as the need for refrigerated warehousing continues to increase with demand from e-commerce and biotech.
The Texas Triangle’s demographic growth and solid economic performance make it an ideal region for cold storage expansion. With significant cold storage investments like the 310,000 SF facility being constructed at Lone Star Logistics Center in Lockhart and proposed sites like Innovation Business Park’s 208,650 SF building in Hutto, the proximity to major transportation networks, combined with access to a large consumer base, further solidifies the area’s suitability for the growth of these facilities. As businesses increasingly rely on temperature-controlled environments to meet their operational needs, the strategic selection of cold storage locations becomes even more essential.
Looking ahead, the rising demand for cold storage facilities will continue to reshape the industrial real estate market in the Texas Triangle. Developers, investors, and businesses alike recognize the value of these specialized spaces as an essential component of the modern supply chain. The region’s unique economic strength, population growth, and industry diversity position it at the forefront of the cold storage revolution, ensuring that the Texas Triangle remains a vital player in the future of logistics and industrial real estate.
*Research information is sourced from CoStar data compiled through ECR from custom reports using existing, non-owner occupied properties above 10,000 SF.
