Cold Storage Acquisition Calculator

Cold storage commands premium over dry warehouse but with higher operating costs.

Pallet positions

Monthly rate / position

Occupancy %

Throughput revenue

Expense ratio %

Cap rate %

Purchase price

$13,140,000

NOI

$788,400

Annual revenue

$1,752,000

How the math works

Storage = positions × occupancy × rate × 12. Total = storage + throughput. NOI = total × (1 − expense).

20k × 92% × $2.50 × 12 = $552k + $1.2M = $1.75M × 45% = $789k NOI / 6% = $13.15M.

How to Use

Enter pallet positions.
Enter monthly rate / position.
Enter occupancy %.
Enter throughput revenue.
Enter expense ratio %.
Enter cap rate %.
Read purchase price.

Frequently Asked Questions

Cold storage economics?

Rates: $1.50–4.00 per pallet position per month for storage. Throughput (in/out): $5–15/pallet additional. Class: dry (40°F+) cheapest, refrigerated (28–35°F) mid, frozen (-10 to 10°F) most expensive. Capex $/sf: $200–400 (3x dry warehouse). Power: $1–4/sf/yr (10–15x dry). Cap rate: 5.0–6.5% institutional Class A; higher for older. Operators: Lineage Logistics, Americold, US Cold Storage. Tenants: food brands, supermarkets, distributors. Strong post-COVID grocery + food delivery growth.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.