An uptick in steel-related manufacturing and growth in the auto industry are likely to cause demand for crane-served facilities to intensify throughout the year, according to Transwestern. These specialized buildings feature massive overhead bridge cranes to maneuver heavy metal materials or large, unwieldy products.
Automakers and associated suppliers are driving absorption of crane-served buildings in parts of Michigan, Missouri, South Carolina, Georgia, Tennessee, Alabama, Mississippi, Kentucky and Texas. In addition, suppliers are securing space in traditional industrial properties as they ramp up operations to meet demand from automakers.
Steve Kozarits, Transwestern, tells GlobeSt.com: “Growth in the automotive and aviation industries, such as the new Boeing Dreamliner facility in Charleston, SC, is creating additional demand for special-purpose space. Our data shows that overall vacancy for crane-served buildings in the US declined 0.7 percent over the past quarter to 14.2%.”
As these companies expand practices, each must evaluate whether to acquire, lease or build space. Because crane-served buildings must be custom-tailored to the tenant's specifications, many businesses have found constructing a new facility to be the most cost-effective option when looking for new space.
Crane-served buildings are expensive to develop–sometimes double that of a typical warehouse. Presently, the specialized buildings cost $100 to $120 per square foot for the shell versus $60 to $70 per square foot for the shell of a traditional industrial facility. And with construction costs escalating, reliable build-versus-lease analyses will become increasingly more important, says Transwestern.
Join the conversation March 29 at RealShare HOUSTON. Click here for more details on Houston CRE's premier information and networking event.
An uptick in steel-related manufacturing and growth in the auto industry are likely to cause demand for crane-served facilities to intensify throughout the year, according to Transwestern. These specialized buildings feature massive overhead bridge cranes to maneuver heavy metal materials or large, unwieldy products.
Automakers and associated suppliers are driving absorption of crane-served buildings in parts of Michigan, Missouri, South Carolina, Georgia, Tennessee, Alabama, Mississippi, Kentucky and Texas. In addition, suppliers are securing space in traditional industrial properties as they ramp up operations to meet demand from automakers.
Steve Kozarits, Transwestern, tells GlobeSt.com: “Growth in the automotive and aviation industries, such as the new
As these companies expand practices, each must evaluate whether to acquire, lease or build space. Because crane-served buildings must be custom-tailored to the tenant's specifications, many businesses have found constructing a new facility to be the most cost-effective option when looking for new space.
Crane-served buildings are expensive to develop–sometimes double that of a typical warehouse. Presently, the specialized buildings cost $100 to $120 per square foot for the shell versus $60 to $70 per square foot for the shell of a traditional industrial facility. And with construction costs escalating, reliable build-versus-lease analyses will become increasingly more important, says Transwestern.
Join the conversation March 29 at RealShare HOUSTON. Click here for more details on Houston CRE's premier information and networking event.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
