What to Do With Outdated Industrial?
It’s estimated that 30% of the US commercial and industrial inventory is unused and outdated. That’s a serious problem, considering that it costs companies $15 million each to maintain that square footage every year, and every year, the leasing value drops by 77 cents a foot. These statistics come from a groundbreaking survey of those corporate users, mounted jointly by SIOR and the Industrial Asset Management Council. The results of that study, which previously appeared on GlobeSt.com, was the subject of a special session at the recent SIOR Spring World Conference here. And as exclusive media sponsor of the conference, GlobeSt.com was able to chat with two of the presenters: Mark Beattie of Hickey & Associates, and Kevin McGowan, CCIM, SIOR, of McGowan Corporate Real Estate Advisors.
Which are the most readily adaptable?
“A warehouse or distribution facility is the most adaptable type of facility…in some cases it can be as simple as raising a roof on a facility.”
In this special “SIOR Live” video interview, you will hear:
- An in-depth discussion of the methodologies behind the survey; (00:51)
- The potential ROI to be found in adaptive re-use; (2:09)
- Which facilities are the best candidates for adaptive re-use; and (3:14)
- The potential for support from available government incentives. (5:59)