The possibilities are virtually limitless when creative vision is backed by a skilled construction team experienced in executing complex adaptive reuse projects. The benefits extend further than stop at one-of-a-kind living and working environments that merge historic elements with contemporary functionality.

Pursuing adaptive reuse development answers the growing call for sustainable practices that reduce construction waste and reuse building materials. It can also lead to significant cost and time savings compared to ground-up new construction, particularly for properties in prime urban locations. Many municipalities even offer financial incentives like tax credits to incentivize giving old buildings a second life.

As cities become more dense and open land becomes increasingly scarce, adaptive reuse will undoubtedly play an increasingly vital role in meeting the demand for living and working environments.

3. Build Your Network

Industry Connections:

• Attend Events: Participate in real estate conferences, networking events, and industry forums to connect with fellow developers, investors, lenders, and professionals.
• Join Associations: Consider joining real estate associations or professional organizations to expand your network and access resources, education, and opportunities.

Partner with Experts:

• Collaborate with Professionals: Build relationships with architects, engineers, contractors, attorneys, and other industry professionals who can provide expertise and support for your projects.
• Form Partnerships: Explore partnership opportunities with experienced developers or investors who can provide capital, guidance, or joint venture arrangements.

4. Secure Financing

Financial Planning:

• Assess Your Resources: Evaluate your financial capacity, including savings, investments, and access to credit, to determine your funding options. It’s also important to create relationships with banks and lending institutions.
• Create a Budget: Develop a realistic budget for your development projects, considering land acquisition costs, construction expenses, carrying costs, entitlements and permitting, and contingency funds.

Explore Financing Options:

• Traditional Lenders: Approach banks, credit unions, and mortgage lenders to inquire about construction loans, acquisition loans, or lines of credit for real estate development.
• Alternative Financing: Explore alternative sources of financing, such as private lenders, hard money loans, crowdfunding platforms, or syndication.

7. Marketing and Sales

Branding and Promotion:

• Develop a Brand: Create a strong brand identity for your development projects, including names, logos, and marketing materials that resonate with your target audience.
• Marketing Strategies: Implement marketing strategies to generate interest and attract potential buyers or tenants, such as digital marketing campaigns, open houses, and signage.

Sales and Leasing:

• Engage Buyers/Leaseholders: Showcase your properties through effective sales presentations, property tours, and negotiations to secure purchase agreements or lease agreements.
• Close Deals: Work with reputable real estate agents or brokers to facilitate transactions, handle paperwork, and ensure smooth closings.

8. Evaluate and Iterate

Performance Analysis:

• Assess Results: Evaluate the success of your development projects based on length of investment, financial performance, market response, customer satisfaction, and other key metrics.
• Learn from Experience: Identify lessons learned from each project, including successes and challenges, to refine your strategies and improve future developments.

Adaptation and Innovation:

• Adapt to Market Changes: Stay informed about market trends, economic conditions, emerging neighborhoods, and regulatory developments to adapt your strategies accordingly.
• Innovate and Evolve: Embrace innovation, technology, and sustainability practices to differentiate your projects and stay competitive in the real estate market.

Other Considerations

A number of other variables about the project’s features will impact the industrial design and construction.

For example, will the building be all dry storage or will it be a cold storage facility, in which case freezers need to be installed.

Will the building be used as a distribution facility? If so, the design must ensure a proper flow from production to the packing lines.

Some projects incorporate a showroom and nice offices, thereby requiring air conditioning systems. And for some clients, LEED certification is important, which will influence the design and selection of materials and systems.

With all these considerations, the contractor’s early involvement will yield the greatest efficiencies and savings in project planning and construction.

Future of Industrial Construction

Despite challenges like fluctuating material prices and labor shortages, the manufacturing and industrial construction sectors are expected to see continued growth in 2024, fueled by federal funding initiatives. Key to success will be adhering to best practices, starting with site selection, considering factors like soil condition and accessibility.

Early general contractor involvement is vital for optimizing efficiencies and cost savings. Attention to project-specific features such as cold storage requirements or LEED certification will guide design and construction decisions. Finally, ensuring properly installed foundations will be critical for the functionality and longevity of industrial buildings.

Drones and CMS

As drone technology, and unmanned aerial vehicles (UAV) continue gaining traction, they are finding more applications on construction sites. For example, site surveying and mapping is enabling teams to better plan and manage construction. And drone inspections provide a much more comprehensive overview of a project, thereby supporting worker safety. This critical information can help identify potential hazards and prevent accidents.

Drone-gathered data can also be fed into 3D modeling software to better visualize a developing project and identify potential problems.

Yet another application of drones, UAVs and robots is the delivery of materials to construction sites.

Construction management software is also expected to be adopted by more contractors in 2024. This advanced, cloud-based software acts as one source of truth, enabling subcontractors and designers to communicate and collaborate in a highly efficient manner. The end result is increased efficiencies, time savings and reduced costs. 

As construction projects continue to increase in complexity, and an increased cost of building materials and higher interest rates drive demand for more productivity and efficiencies in projects, the need for all of these technologies will increase in importance.

Early Procurement

Another important strategy on the rise is the strategic procurement of materials to mitigate construction risk. Early procurement is one of the best ways to soften the potential negative impact of material shortages and price escalation. When wait times are too long or too expensive, identifying alternate materials and equipment is another viable strategy.

While the supply chain continues to recover from the effects of COVID-19, the Infrastructure Investment and Jobs Act is creating a new wrinkle. As part of the funding and tax credits currently available for energy-efficient building initiatives, qualifying projects must abide by Build America, Buy America provisions. With more projects seeking parts and materials for purchase in the U.S., this further tipping the supply and demand scale, creating additional pressure on domestic procurement with less availability.

At the same time, the IRA is incentivizing buildings to invest in energy-efficiency improvements including insulation, lighting and HVAC systems, with more than $1.7 billion plus tax credits available for qualifying projects.

Pricewise, the Associated Builders and Contractors reports that construction material costs increased 4.9% last year. While some materials like lumber have decreased, concrete products have increased, as have construction machinery and equipment.

Rashad Callier, Assistant Superintendent – Chicago, IL

Branch of Service: Navy
Rank: E4
MOS (military occupational specialty): Boatswain Mate
Years Served: 4 years
Description: Rashad served on the USS Ingraham FFD-61 in Everett, WA, and the USS Vella Gold CG-7 in Norfolk, VA. He served as a Team Lead for SCAT and earned a Navy achievement medal, Blue Jacket of the Quarter Award, Good Conduct, and a Flag Letter of Commendation for his outstanding service.

Tom Browning, Senior Project Manager – Austin, TX

Branch of Service: U.S. Army
Rank: Captain
MOS (Military Occupational Specialty): Corps of Engineers
Years Served: 7 years
Description: Tom served as an Airborne Ranger and was stationed in West Germany supporting the German Military for 3 years. He served as Platoon Leader, all major staff positions, as well as company commander.