MIAMI—With so much new industrial construction, the question is this: How is the build-to-suit trend impacting the overall industrial and logistics market? Are older industrial buildings becoming obsolete?
“Older buildings aren't becoming obsolete in an overall market sense, but obsolescence is certainly an issue when it comes to buildings that cannot accommodate trailer parking, car parking and ceiling height demands of the users today,” Jim Martell, president of Ridge Development, a private REIT in Chicago, tells GlobeSt.com. “That said, certainly there are users that can backfill some of the facilities that do not meet the requirements for an e-commerce building.”
While some owners of older industrial and logistics buildings are racing to upgrade or retrofit facilities, especially if they have any extra land, others are looking for ways to create healthy and pleasant environments for tenants. At the same time, new delivery methods are emerging to meet client-specific needs for tenants who will lease buildings for 20 or 30 years.
“We are seeing a shift in the building sector with various delivery methods such as performance design build, CMAR, public-private partnership and integrated project delivery,” Charbel Farah, senior principal, Syska Hennessy Group, tells GlobeSt.com. “With these methods, we are seeing more collaboration and shared responsibility among teams that harness the best talent in engineering, architecture, construction and financing.”
Are these the biggest challenges for industrial developers? Read my recent column and sound off.
MIAMI—With so much new industrial construction, the question is this: How is the build-to-suit trend impacting the overall industrial and logistics market? Are older industrial buildings becoming obsolete?
“Older buildings aren't becoming obsolete in an overall market sense, but obsolescence is certainly an issue when it comes to buildings that cannot accommodate trailer parking, car parking and ceiling height demands of the users today,” Jim Martell, president of Ridge Development, a private REIT in Chicago, tells GlobeSt.com. “That said, certainly there are users that can backfill some of the facilities that do not meet the requirements for an e-commerce building.”
While some owners of older industrial and logistics buildings are racing to upgrade or retrofit facilities, especially if they have any extra land, others are looking for ways to create healthy and pleasant environments for tenants. At the same time, new delivery methods are emerging to meet client-specific needs for tenants who will lease buildings for 20 or 30 years.
“We are seeing a shift in the building sector with various delivery methods such as performance design build, CMAR, public-private partnership and integrated project delivery,” Charbel Farah, senior principal, Syska Hennessy Group, tells GlobeSt.com. “With these methods, we are seeing more collaboration and shared responsibility among teams that harness the best talent in engineering, architecture, construction and financing.”
Are these the biggest challenges for industrial developers? Read my recent column and sound off.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
