Cold storage is more than just logistics — it is a cornerstone of the infrastructure that ensures uninterrupted food supply from producers to supermarket shelves. In Kyiv, a significant share of such facilities is operated by 3PL providers, enabling businesses to optimize costs through centralized management of large product volumes.
In the United Kingdom — the largest cold storage market in Europe — 3PL operators manage an estimated 3.4 million pallet positions, according to CBRE UK. Despite its scale, the market continues to experience chronic undersupply, a trend that has only intensified since the COVID-19 pandemic.
One of the sector’s most pressing challenges is aging infrastructure. CBRE UK data shows that approximately 40% of 3PL cold storage warehouses are between 20 and 30 years old, while another 30% have exceeded the 30-year mark. This aging stock presents growing risks, particularly in light of new refrigerant regulations, outdated technologies, and the high costs of modernization — barriers that are especially burdensome for smaller operators.
While larger companies are actively investing in upgrades, smaller players often struggle to meet new compliance standards. Older facilities typically offer capacity for up to 20,000 pallet positions, whereas newly built warehouses start at 50,000, enabling multi-client models and scalable operations.
Against this backdrop, automation has emerged as a key industry trend. Currently, only 5% of cold storage facilities operated by 3PLs in the UK are automated — a result of aging infrastructure and high implementation costs. However, 91% of cold storage capacity currently under development is expected to be automated, positioning operators for greater scalability and efficiency.
Still, automation is not a universal solution. With capital expenditures 2.5 to 3 times higher than those for conventional warehouses, automation becomes economically viable only for facilities accommodating at least 50,000 pallet positions or spanning 16,000–20,000 sq m or more. As a result, older-generation warehouses remain the most vulnerable to market displacement.
In Ukraine, cold storage facilities remain one of the most supply-constrained yet strategically critical segments of the warehouse market — particularly in the Kyiv region. Even prior to the full-scale war, cold storage accounted for approximately 15% of the region’s total warehouse stock. However, the outbreak of hostilities has dramatically altered the landscape: an estimated 21% of Kyiv’s warehouse capacity was destroyed, including 17% of cold storage assets. As of early 2025, the share of cold storage has dropped to just 13%, exacerbating an already chronic shortage.
Despite the launch of several new developments between 2023 and 2025, the market continues to fall short of meeting demand for temperature-controlled facilities. Asking rents for cold storage in Kyiv significantly exceed market averages, ranging from UAH 415–500 per sq m per month ($10–12), while the effective rental rate has risen by 15% to $9.2 per sq m per month (excluding VAT and OPEX). This upward pressure is driven not only by limited supply, but also by the high costs of construction and operation — including energy consumption and technical maintenance.
At the same time, growing demand from pharmaceutical companies, FMCG producers, and logistics providers points to a clear need for modern, technologically advanced cold storage infrastructure. Developers are responding. Alongside new developments, reconstruction of war-damaged warehouses is underway. One of the key speculative projects is the phased rebuilding of the 55,000 sq m RLC warehouse, scheduled for 2025–2026. In addition, discount retail chain Avrora has committed to restoring a portion of the 90,000 sq m West Gate Logistic facility for its own needs, with reconstruction planned through 2025–2027.
Natalia Sokyrko, Head of Industrial and Logistics Real Estate at CBRE Ukraine, commented:
“Cold logistics is no longer a niche segment — it is a core infrastructure component ensuring supply chain resilience in wartime and beyond. Given the growing demand and limited supply, owners of large cold storage facilities should consider capital investments in modernization. These assets are best positioned for adaptation to automation and current food storage standards, helping to reduce energy costs and improve operational efficiency.”For developers, build-to-suit (BTS) solutions — custom-designed warehouses tailored to the specific needs of tenants — are emerging as a promising direction. These projects reduce development risks while incorporating advanced requirements for temperature control, energy efficiency, and logistics optimization. In the current environment, private capital from domestic and international investors is playing an increasingly important role in bringing such infrastructure projects to life, especially in the large-scale segment.
