Smart Move for Industrial? Infill.
The reshoring of manufacturing, demand for big-box space and the need for fulfillment centers in optimal locations are forcing cities across the United States take a hard look at how they can incorporate more and greater use of industrial space. And, as the economy’s expansion carries on, industrial demand will grow, too. In advance of I.CON ’15: The Industrial Conference, Brett Dedeaux, principal with Dedeaux Properties, talked with NAIOP about how U.S. cities are accommodating industrial development and where we’ll see the biggest impact.
NAIOP: Why is infill development in an urban location a smart move for developers?
Dedeaux: Infill locations are in mature markets that typically have proven fundamentals in comparison to emerging markets. And, due to lack of available sites, there is normally less risk of competition. This drives up sale and lease rates in comparison to sites outside of the core where excess development at times keep pricing from growing.
NAIOP: What can master-planned business parks do to stay competitive?
Dedeaux: Master-planned parks have to adapt to the changing demands of today’s user. That means less shared truck courts and more secured yards, additional trailer parking, good access to each building within the park. Today’s tenants want more out of the traditional “park” and expect attractive design with more glass and lighting for employees, plus convenient proximity to retail amenities, highways and workforce housing.
NAIOP: What are desirable characteristic of cities with infill potential?
Dedeaux: The cities that offer proximity to major infrastructure hubs – ports, airports and intermodal rail – growing or currently large populations, business friendly environment open to thoughtful development.
Hear more from Dedeaux and a top panel of industrial experts discussing Can America’s Cities Accommodate Industrial Development? at I.CON ’15, June 10-11, in Long Beach, California. See the conference website for details on who attends, hot sessions, and project tours.
Kathryn Hamilton, CAE, is Vice President for Marketing and Communications at NAIOP Corporate.