Area Development
Site & Facility Planning Insider
The Changing Face of Industrial Real Estate
Advanced manufacturing, or “maker-tech,” isn’t defined by a particular set of activities. Its defining feature is most often the variety of uses it brings together in an industrial setting, from computer-aided design in an office setting to welding and machining in the next room or a building nearby. 
 
Maker-tech firms cluster around larger manufacturers, acting as problem-solvers for these organizations and speeding the innovation process, as profit models have shifted towards responsiveness and speed-to-market.
 
This runs contrary to the idea of competing for sales and profit by achieving the lowest cost, which was the principal force behind offshoring the manufacture of many household and personal goods in years past.
 
While the scale of manufacturing in places like the Midwest has decreased due to trends like offshoring and automation, the role of the remaining real estate many times has not. All across the Rust Belt we’re seeing unexpected innovation happening in old manufacturing facilities such as Electric Works in Fort Wayne, the Detroit Foundation Hotel, the Bottleworks District in Indianapolis, the Cleveland Aquarium, and the Indiana IoT lab in Fishers.
 
Meanwhile, as large e-commerce providers and online retailers fight for space in urban areas, former industrial-use facilities and available land become more expensive. This trend of industrial warehouses cropping up in urban locations creates a whole new level of employment that will only continue to grow as the urban environment changes and adapts to new technologies and consumer preferences.

Retaking the Rust Belt

Rich Forslund, Executive Vice President, Colliers International

Across the Midwest, new life is being breathed into old industrial facilities that are becoming home to IoT incubators, office space, and other mixed-use development.

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“Maker-Tech” Crosses Lines of Industrial, Office & Retail Uses

Edward Del Beccaro, Senior Managing Director, Transwestern

A new niche is forming in the industrial sector which needs to be near existing “brain clusters” of the targeted industry and may require sites zoned for multiple uses.

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In Focus: E-Tail Creating Demand for Urban Warehouses

Joseph Panepinto, Panepinto Properties

In order to be close to their target markets, e-retailers are locating warehouses in urban locations and taking advantage of these densely populated areas’ built-in employee bases.

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