What are the yearly running costs of a cold storage warehouse?

A cold store’s costs centre on one job: keeping a large insulated space at a steady temperature, all day and all night. That makes its costs different from a dry warehouse or a self-storage site. Rather than quote numbers, this page lists the categories you should see in the seller’s records and who can tell you what each will cost.

Electricity and the plant behind it

Power is a major running cost to examine. Ask for a full set of utility bills and look at how charges are structured, since some are tied to peak demand and not only total use. Also ask the refrigeration contractor who services the plant for its maintenance history, the age of key equipment and what they would expect to replace soon.

The building itself

Insulated panels, doors, seals, dock equipment and freezer floors wear out, and repairs can interrupt service. Ask for records of past repairs and any work that has been put off. A building inspector or a contractor with cold-room experience can assess the shell and give you a realistic view of what it needs.

People, equipment and protection

• Labour for freezer work, including protective clothing and extra breaks
• Forklifts and racking, with their maintenance and replacement cycles
• Backup generator or other standby power, and its testing
• Temperature monitoring and alarms, with someone on call to respond
• Insurance for the building and for customers’ stored goods

Compare these against the general picture in our page on what it costs to own and run a self-storage facility, and note how many extra items refrigeration adds.

Who prices what

Your insurance broker can explain what coverage the business carries. Your accountant can tell you how the costs show up in the statements. Ask the lender what it requires, since it will set its own terms.