The cold storage sector in Europe, particularly in the UK, is showing signs of transition from stable operation to active renewal. Although the country is the largest cold storage market in Europe (about 3.4 million pallet spaces in the 3PL segment), demand exceeds supply and much of the infrastructure is outdated.
According to CBRE estimates, 70% of warehouses are more than 20 years old, which makes it difficult to adapt them to new requirements, from types of refrigerants to energy saving. Large operators are investing in automation and scaling: new facilities are designed for at least 50,000 pallet spaces, but only 5% of existing warehouses are automated. In development projects that are currently being implemented, automation already covers 91% of capacities, but its implementation is appropriate only on large areas – from 16,000 square meters and above.
In Ukraine, the situation remains even more complicated. Cold storage in Kyiv is one of the most scarce segments, even before the war they occupied 15% of the market. After the start of the full-scale invasion, about 17% of such objects were destroyed, and their share in the total volume of warehouse real estate decreased to 13%.
Despite the launch of new projects in 2023-2025, the demand for warehouses with temperature control significantly exceeds the supply. This pushes prices up: the requested rental rates in Kyiv have reached $10-12/sq. m/month, and the effective rate has already increased by 15% — to $9.2/sq. m/month without VAT and operating costs. Against the backdrop of high energy and maintenance costs, further price increases are expected.
