cost to operate 

It’s no secret that cold storage is costly. Some commercial real estate experts have estimated the construction costs of cold storage warehousing as high as $350 per square foot.


And for reasons we’ll address next, renting cold storage space is getting less viable by the year.


A lack of vacancy drives up the cost of cold storage warehousing for businesses that don’t own and operate their own facilities. (In the US those that do make up about one-fifth of refrigerated storage capacity. The rest is outsourced.)


According to 2019 data, the total cold storage inventory for the U.S. stands at around 215 million square feet, with as much as an additional 2.5 million in the works. Virtually all this space, however, is already spoken for, including the facilities that haven’t even been built yet.


Cold storage facilities vary widely. Warehousing hubs in the Midwest and the West Coast have been standard bearers for the sector in the US, but that doesn’t mean all cold storage facilities are as innovative and efficient. Whether you rent or own your cold storage facility, the increased demand on refrigerated packaged goods will mean spending the company budget on repairs. 


And that’s if you even know what to fix. If you don’t, that means you’re spending more overall because of outdated technology or energy loss.


Mobile racking systems from Montel are built for food production or distribution businesses that depend on cold storage.

First, they maximize energy expenses by utilizing as much of the cold storage space as possible. High-density racking reclaims space once needed for aisles to effectively double capacity. Stack those racks higher and higher for even greater potential.


More importantly, high-density mobile racking also maximizes the space you already have, meaning you don’t have to waste money expanding your facility or searching for new cold storage warehouse space in an increasingly competitive market.


Finally, although high-density mobile racking does require upfront investment, its very nature encourages a fast ROI no matter what you do. You can choose to move more product, cut back on your racking footprint to save on rent, or, if you own your cold storage facility, optimize your racking footprint to then rent out your reclaimed space to take advantage of market scarcity. 


See how Montel’s fully customizable high-density mobile racking has revolutionized cold storage for food and beverage producers and distributors the world over.

This website uses cookies to ensure you get the best experience on our website. By continuing to browse our website, you are agreeing to our use of cookies. Learn more Continue