Industrial Property Values are on the Upswing
Current Market Conditions in Industrial Property Values
The law of supply and demand predicts that when demand exceeds supply, prices increase, and vice versa. That said, the demand for industrial spaces including warehouses, distribution centers, and light or large manufacturing in major metropolitan areas and beyond is on the rise… and not just in any market, but all across the US. Good news for you – LIFTEX can assist businesses and CRE owners with Brownfield Properties to capitalize on this opportunity.
Inventory is Getting Tighter and More Expensive
The July Industrial Market Report from Commercial Edge details how the size of the industrial supply pipeline has shrunk for six straight quarters; in more quantifiable terms, more than 1.1 billion square feet began construction between 2021 and 2022, but starts fell to 357.5 million in 2023. Higher construction loan rates and political-economic apprehension contribute to this trend.
Over the past year, the average rent has risen by 7.5%, making available space more expensive than in the past. Now more than ever, it’s much more cost-effective to maximize the potential of an existing structure that can be made more valuable, breathing life into a potentially depreciated asset.
What Makes a Brownfield Project Attractive?
A brownfield project involves repurposing a current or former business facility with an existing infrastructure and foundation from which to grow. The building use may have changed over time and now requires adjustments to meet the needs of new customers. For example, a facility may switch from retail to a third-party logistics provider or expand current storage capacity. LIFTEX can help these companies create a business case to remain in place, supporting the community and keeping the skilled workforce intact, rather than face costly relocations in increasingly pricier markets.
Where Are These Opportunities?
Urban Areas: These locations present tried and tested opportunities with good infrastructure, a supportive local community, and faster development timelines. At LIFTEX, we have numerous examples of how companies have improved existing facilities in urban areas without needing to expand outward or build a new addition.
Suburban and Rural Areas: Opportunities in these areas often involve larger tracts of land and may cater to different industrial needs. The existing facilities can often be modified to serve new industrial purposes without the need for extensive (and costly) new construction.
Skilled Workforce
Retaining skilled labor is crucial for any successful operation, and retraining workers is both costly and time-consuming. Brownfield projects help businesses maintain their skilled workforce by providing stability for employees and avoiding the headaches and expenses of hiring and training new staff.
The Sky’s the Limit! LIFTEX is the Answer
Cost-Effective Solutions: By enhancing existing structures, LIFTEX provides cost-effective solutions that maximize space and improve operational efficiency without the need for new construction.
Community and Business Benefits: Investing in Brownfield projects benefits the community by revitalizing old structures and supporting local economies. For businesses, it means retaining a skilled workforce and avoiding the disruption of relocating. The property owners are happy, the community is happy, the workforce is happy. LIFTEX’s innovative solutions ensure that industrial property values continue to rise, providing comprehensive benefits to all stakeholders.
Let’s Start the Conversation
LIFTEX specializes in state-of-the-art roof lifting solutions like no one else. We invented the process over 50 years ago and have refined it ever since, delivering results for hundreds of satisfied clients around the United States. Our roof-lifting solutions maximize your existing space and enhance the value of your property. Contact us today to learn more about how roof-lifting can transform your commercial real estate and support your growth!
