1. Chapter 6 Industrial Development

2. -The first planned industrial park was in 1896 in Manchester, England. -The first in the United States was in Chicago in 1902. -Focus on manufacturing. -Gravity Flow Production: Multi-story building where production began on the top floor and proceeded as the product moved down each floor with the first floor completing the product.

3. Today’s typical one-story layout was first used by Henry Ford with his horizontally organized assembly lines. During the 1920’s and 1930’s, most industrial parks were centered around railways or waterways. This became less important in the 1950’s and 1960’s due to: -Interstate system -Airports

4. Industrial Development building categories. Warehouse/Distribution: Storage and distribution of goods. Subcategories of warehouse/distribution: - Regional warehouses - Bulk warehouses - Heavy distribution - Refrigerated distribution - Rack-supported distribution

5. Building categories continued… Manufacturing: Designed to accommodate the manufacturing process. -Difficult to adapt space for another use Flex: Anything between office and warehouse Multi-tenant: Office/showroom examples Office/Tech Freight Telecommunications

6. Categories of Business Parks -Industrial Park -Warehouse/Distribution Park -Logistics Park -Research Park -Technology Park -Incubator Park -Corporate Park

7. Market Analysis -Economic trends -Employment growth in specific job categories -Local policies towards industrial development -Forecasted demand -Current inventory -Absorption -Historic vacancy

8. Site selection considerations -Proximity to larger customers/suppliers -Clustering and agglomeration -Proximity to airports/docks Foreign Trade Zones -Access

9. Site selection -The usual suspects… utilities, access, zoning, etc. -Environmental regulations: Industrial developers are more concerned with environmental impact than other developers. -National Environmental Policy: Use of federal funds requires environmental impact statement -Clean Air Act: Traffic flow and indirect vehicle use -Clean Water Act: Restricts discharge of pollutants -Occupational Safety and Health: Safe working conditions for employees -National Flood Insurance Act: Limits development in flood prone areas -Comprehensive Environmental Response, Compensation and Liability Act (Superfund): Addresses issues concerning toxic waste

10. Considerations in site design -Lot sizes: Typically 200-300 feet deep, but it generally depends on the use -Access: The more the merrier Employee Trucks and other industrial vehicles Minimum truck apron is 120’ Amenities: Deli, ATM, postal services, support services

11. Building design Minimize number of columns!!! Ceiling height is greatly important, 30-32 feet today. Wall systems - Concrete tilt-up - Masonry - Pre-engineered metal

12. Marketing Technical Services Package - Statistical data and site information such as utilities and fire protection - CC&R’s - Procedures for architectural approval - Signage - Permitted uses

13. Marketing, continued… Sales Brochure - Major tenants - Overall development plan - Technical building information - Location and surrounding uses - Developer’s track record

14. Factors that may impact industrial development in the future. -Greater efficiencies in logistics, clustering -High-speed connectivity -Entitlement process may cause land prices to rise