Friday, May 13, 2011

Why can’t companies redevelop existing industrial sites instead of using large new sites?

The Winston-Salem Dell plant was a greenfield development
The short answer is that it is possible, but not as likely. Here are some reasons why:
  • Older areas require the assembly of smaller land parcels with existing buildings that in total are often more time-consuming and expensive than greenfield sites
  • Older industrial buildings, though well constructed, are often unsuitable for new industry because of low ceiling heights and piece-meal layout of buildings from periodic additions
  • It is difficult to assemble more than 50-100 acres because of the existing street network
  • Large new industrial projects from out-of-region operate on tight timelines and require “ready-to-go” buildings or sites
  • Older industrial areas are more likely to be used at lower prices by a local Class C versus Class A occupant
  • Well-constructed industrial buildings can be reused for multifamily, office or retail uses, usually by local firms

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