2. Install Green Roofs or Walls

Green roofs or walls are an excellent way to improve a building’s insulation and air quality. These living installations help reduce the urban heat island effect and manage stormwater runoff. Additionally, they enhance biodiversity in urban environments and create aesthetically pleasing spaces, contributing to the overall well-being of building occupants and the surrounding community.

4. Use Energy-Efficient Lighting and HVAC Systems

Incorporating energy-efficient lighting and HVAC systems is crucial for sustainable commercial spaces. This includes installing LED lighting with smart controls to reduce energy consumption. Implementing high-efficiency heating, ventilation, and air conditioning systems further enhances energy savings. Utilizing building automation systems helps optimize energy usage across all these components, resulting in significant reductions in energy consumption and costs.

6. Implement Waste Reduction and Recycling Programs

Effective waste management is essential for sustainable commercial spaces. This includes designing spaces with dedicated recycling and composting areas to facilitate proper waste sorting. Educating occupants on proper waste sorting and reduction techniques is crucial for the success of these programs. Partnering with local recycling facilities ensures proper disposal and helps complete the recycling cycle.

8. Utilize Water-Efficient Fixtures and Landscaping

Water conservation is a critical aspect of sustainable building practices. Installing low-flow faucets, toilets, and showerheads significantly reduces water consumption. Using drought-resistant plants and efficient irrigation systems for landscaping minimizes outdoor water use. Implementing greywater systems for non-potable water uses further reduces the demand for fresh water, making the building more resilient and environmentally friendly.

What has been your favorite part about interning at Summit Design + Build?

Atousa: “My favorite aspect has been the sense of family within the team. Everyone is extremely friendly and accessible, creating a warm and welcoming environment.”

Kenan: “The team are all very welcoming and helpful. Everyone creates a good atmosphere.”

Krutika: “My favorite part about working at Summit has been site visits, from assisting with project planning to witnessing the execution phase on-site, every day has presented new challenges and learning opportunities.”

Kosha: “I’ve really enjoyed the collaborative environment. It’s great to be a part of a team where everyone is incredibly talented but humble at the same time!”

Noah: “Meeting new people”

Mark: “My favorite part of the job so far is getting the opportunity to meet with many new people in my industry.”

What has surprised you the most about interning at Summit Design + Build?

Atousa: “I was pleasantly surprised by how quickly I was accepted into the team and how seamlessly I integrated. Additionally, despite being an intern, I was entrusted with critical aspects of the work, which provided significant learning opportunities.”

Kenan: “What surprised me the most is the level of detail that is taken into every project.”

Krutika: “The Gong Ringing!!!!”

Kosha: “I was genuinely surprised by how much hands-on experience I’d get as an intern working at Summit. From day 1, I’ve been working closely on various projects and it’s empowering to see my input being valued.”

Noah: “Everybody that I have had the opportunity to work with has been really nice”

Favorite Summer Activity?

Atousa: “Chicago is bustling with fun activities during the summer. From enjoying the river walk to attending concerts and shows, there’s always something exciting to do.”

Kenan: “Bike rides and going to the beach.”

Krutika: “My favorite summer activity is taking leisurely beachside strolls followed by some boba tea, it’s the perfect way to unwind and recharge!”

Kosha: “Hiking for sure. It’s exciting getting out in nature, tackling a challenging trail, and overall enjoying everything Chicago has to offer!”

Noah: “Water Skiing.”

Mark: “My favorite summer activity is to go tubing on the river.

If you could be on site of any construction project, what would it be and why?

Atousa: “I would choose to be on-site at the 4315 S Congress project. Its complexity and challenges make it particularly interesting, and I’m keen to observe the detailed coordination in action.”

Kenan: “I’m onsite 4 days out of the week, which is an awesome experience. Very few companies give you such a hands-on experience with construction like this.”

Krutika: “If given the chance, I would love to be on-site for the construction of a luxurious villa in Hawaii/ Tulum! Whether it’s overseeing the installation of custom-designed interiors, ensuring meticulous landscaping, or integrating smart home technologies, every aspect of creating a luxury villa looks like fun and opportunity for creativity!”

Kosha: “I really wish I could check out the Egyptian pyramid while it was being built and find out its construction techniques. I’ve heard the technology used was way ahead of our time and I would like to discover it!”

Noah: “FSU Student Housing – I would like to see the inside of it in person and compare it to the housing at Purdue!”

Mark: “I honestly like where I am at, 4315 South Congress. I’ve never had the experience on working at a job this big before and I enjoy learning everything that goes into running an operation as big as this one.”

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.

Design-Build

With design-build, a project’s design and construction is combined into one contract. With this project delivery approach, construction may commence before the design is completed. This fast tracks the construction and supports greater collaboration between the design and construction teams.

At the same time, it can be more challenging to estimate costs, plus the fact that there’s no competitive bidding in certain areas beyond the project’s onset. That said, the highly collaborative aspect of design-build construction and the expedited speed to market often more than compensates for this.

Lump-Sum

In the lump-sum contract, a total price is named for the entire job. This comprises all the time and materials, regardless of any changes or setbacks. Because the contractor is taking on a lot of risk, the cost is often set a little higher. This can be done on GMP and others as well.

This approach works well for projects with a well-defined scope.

Administration and cash flow estimates are easier and the contractor is freed up to focus on quality, materials and output.

For this type of contract to really pay off, contractors need to do a good job of estimating the project’s schedule, materials, labor costs, overhead costs and profit margins.

Design Analysis and Constructability Review

The construction team then performs design analysis/reviews, identifies project constraints and performs constructability reviews. Contractors can lend their expertise in providing input on materials and product specifications, and assessing options for value engineering.

The contractor also develops a cost model and provides estimates as the design evolves. Once the cost model and budget are established, a budget tracking system is implemented to monitor any issues or changes in scope that put pressure on the budget.

To the extent that the team is organized and establishes regular lines communication and collaboration, the fewer surprises will arise down the road. This reduces the risk of project conflicts and delays, and increases opportunities for project savings.

Along these lines, team are encouraged to establish risk management strategies and examine all “what if” scenarios.

A recommended best practice is establishing a Master Schedule to identify long-lead time items, critical path items, occupancy and closeout. For example, equipment like elevators, electrical gear, HVAC units and generators tend to require longer lead times for delivery.

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.