It comes down to supply and demand, he said. There are risks with spec buildings, like fickle macroeconomic conditions and acute local ones, which can dry up demand in a hurry, leaving a municipality and a developer holding an empty building.įor now, “it doesn’t feel like that party will end any time soon,” said Andrew Hunt, the Vieth Director for the Center for Real Estate at Marquette University. The buildings are scheduled for completion in 20. In Whiteland, Ind., a town of about 4,400 people, local leaders courted an Atlanta firm to invest $70 million to build two spec buildings, one 500,000 square feet and the other 1.1 million square feet. Even small towns are putting their muscle behind such construction. It isn’t just large markets getting in on the spec building boom. But that process, known as building to suit, is too slow for many businesses in the increasingly volatile supply chain ecosystem. It used to be that a city would open an industrial park with great fanfare, promoting its utilities and roads, and that companies would do the rest. “We started seeing a big push five years ago, and the folks that we talk to say it is simply that these companies are expanding at such a rate that they won’t have the time or expertise to build a building from scratch,” Mr. The need for speed makes spec buildings increasingly attractive to developers and economic officials, who say the trend is accelerating. Typically, amenities for spec buildings are sparse, but most have loading docks, ample height clearance and parking lots. What makes the West Chester Trade Center noteworthy is that it was built on speculation, meaning that it was constructed without a guaranteed tenant.
General Electric opened a 3-D printing facility with jobs that averaged over $100,000 in annual salary, said David Fehr, the director of the Butler County Department of Economic Development. Part of West Chester, a town about 18 miles north of Cincinnati, is bound by three interstate highways, which has made it a coveted logistics hub, and developers have taken note: Not long ago, seven acres of farmland there were targeted for repurposing by NorthPoint Development.Ī mere 18 months after the project was proposed, the first tenants began moving into the 1.8-million-square-foot West Chester Trade Center, which had risen on those acres and brought medical businesses and light manufacturing with it. But, as the economy has changed, so have the demands for space. Twenty-five years ago, the growth was powered by affordable housing and award-winning schools. WEST CHESTER, Ohio - Suburban spillover has long been chewing away at the bucolic countryside around Cincinnati.
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