on investment. Of course, the simplest adaptive re-use would be in
warehouse spaces, essentially big open boxes. Forty-five percent of
the respondents said they’d be in for a one-to-three-year ROI, while
29 percent said they’d consider a three-to-five-year through-time.
It’s important to note that all of this unused space costs companies
$15 million per year to maintain, while the potential lease rate drops
77 cents for every one of those years.
Some of the best advice to emerge from the study involved how to
build into the re-use maximum flexibility for future functionality.
Certainly not all fallow assets are candidates for re-use, but for
those that are, some of the suggestions include planning for
redundant power, clustering core services, and avoiding specialty
configurations as much as possible. Also, have your exit strategy
worked out in advance.
That last bit of advice might be the most critical if you’re not ready
to embrace what could be major changes in the supply chain that are
coming as a result of current developing technology.
As Uldrich indicated during his keynote at the Spring World
Conference in Las Vegas, there are technologies in place now that
will only grow exponentially, becoming “faster, better, and more
affordable.” Many of them will dictate how we build — or at least
how we distribute. Uldrich said that GE has committed to 3D-printing
its aircraft parts by 2017; just imagine how our current ability to
grocery shop via cellphone will impact the look and purpose of our
neighborhood grocery store and distribution channels.
Yes, the industrial market is changing, and there’s more dramatic
change ahead. Whether it’s the growing demand for class A
space, welcoming a new (or returning) class of tenant, or the
accommodation of new technologies, you’ll need to be ahead of
the curve to survive and make a competitive statement. Whatever
comes…it won’t be business as usual.
Or as Uldrich pointed out, you should ask yourself the following
question: “It’s 10 years in the future and I am out of business. What
did I not see coming?”