The Hot New Real-Estate Investment Is in Keeping Food Chilled

Cold storage is becoming one of the hottest real-estate investments during the pandemic.

Lineage Logistics LLC, the world’s largest landlord of temperature-controlled warehouses, concluded a fundraising round last month that brought in $1.6 billion. It is expected to pursue a public offering, according to commercial real-estate analytics firm Green Street.

Americold Realty Trust,

the only publicly listed cold-storage real-estate investment trust, recorded a 6% increase in net operating income in the second quarter. Together, the two firms have 59% of the cold-storage market share in the U.S. and are growing quickly.

Fans of this niche sector say the pandemic showed it can readily adapt to new customers and environments.

Cold-storage warehouses, which are similar to industrial warehouses but are refrigerated to store goods that need to remain fresh or frozen, usually cater to food producers, food wholesalers and retailers such as grocers, restaurants and other bulk buyers. But during

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