In this Q&A, Colliers’ Tyler Ryon, Senior Vice President, joins Anjee Solanki, National Director of Retail and Practice Groups | U.S., to explore the factors shaping the food and beverage (F&B) real estate sector. They examine what sets this specialty market apart, including the role of cold storage and distribution. They also consider how infrastructure, regulation, and the strength of agricultural hubs and secondary markets shape long-term opportunities.

Anjee Solanki (AS): What sets food and beverage real estate apart from other specialty sectors like hospitality, life sciences, or data centers?

Tyler Ryon (TR): Cold storage makes this sector unique. Think of it like grocery shelf space: limited, valuable, and constantly in motion. In F&B real estate, storage is about cubic volume, not just square footage. Operators maximize efficiency by building higher rather than expanding outward. That vertical flexibility allows businesses to scale quickly, even though maintaining consistent temperatures adds complexity.

AS: How does this flexibility translate into development and rental models?

TR: Landlords in primary markets are designing to higher specs, often starting with 40-foot clear heights and going up to 60–80 feet. The more pallets you can store vertically, the more revenue you generate. This directly impacts what tenants can afford in rent. This throughput-driven model makes F&B distinct from data centers, where no physical product moves in or out.

AS: Beyond building design, what operational challenges do food and beverage tenants face?

TR: Water supply and wastewater management are critical, along with power availability. While cold storage doesn’t demand as much electricity as labs or data centers, the broader manufacturing process often does. As data centers proliferate, competition for infrastructure—especially power—is becoming more pronounced. Labor is another major factor. Manufacturing facilities require large workforces, so access to labor pools and adequate parking are as important as access to distribution corridors.

AS: Where are you seeing the most opportunity for growth?

TR: There’s virtually no oversupply in this sector — growth is especially strongest around agricultural hubs, ports, and increasingly in secondary and tertiary markets. Onshoring is here to stay, and consumers want fresh, local food. Rural areas, especially those included in Opportunity Zone expansions, will see renewed investment. Additionally, incentives like accelerated depreciation on facility upgrades are encouraging operators to modernize existing buildings rather than always build new.

AS: How does this growth connect to broader community development?

TR: Workforce housing will be a critical piece. As manufacturing expands into rural areas, affordable housing will be needed to attract and retain employees. Over time, this creates a ripple effect — housing brings rooftops, which in turn attract retail and services. We’re likely to see a more distributed population base as people move out of urban centers and into areas where F&B facilities are driving economic growth.

AS: Emerging models like vertical farming and hybrid retail are gaining traction. How do you see them fitting into the bigger picture?

TR: Vertical farming is still early-stage, but it’s promising. Some operators are already scaling rapidly, planning facilities multiple times larger than current needs. Hybrid retail, particularly grocery stores with extra storage supporting delivery and hub-and-spoke distribution, is also growing as suburban and rural populations expand. Together, these models support consumer demand for fresh, local, and customizable food, while reducing shipping and storage costs.

AS: Final question — if you could be any food and beverage brand, which would you choose?

TR: My kids helped me answer this one: Mug Root Beer. It’s a family favorite in our fridge, and with two English Bulldogs at home, we’ve got mascots that look just like the logo!

Learn more about Colliers’ Food & Beverage capabilities: https://www.colliers.com/en/services/food-beverage