“Historically, spec buildings have been risky, but in a market environment like we are in now, where there is a race to get goods to people faster and to manufacture more things, the flexibility of the spec space becomes an asset, not a liability.” — The New York Times
Biomedical clients are among the most popular movers of the building trend, propelled by demand imbalances for lab space. E-commerce is another common tenant, followed by light manufacturing operations from companies like IBM that leverage high-paying jobs in smaller communities like West Chester, Ohio already targeted by developers for their easier-to-navigate zoning laws.
The rise of inflation, labor shortages, materials costs, and ongoing supply chain lags are seen as both threats and contributors to the trend continuing unabatedly. Marquette University's Andrew Hunt estimated that the average warehouse construction costs 40% more when compared to last year but still thinks the economy is in developers' favor. As he told the Times, "It doesn’t feel like that party will end any time soon."
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