Page 21 - RE-NJ Aug2020
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REALESTATENJTM 19
    ROUNDTABLE
HOW WILL INDUSTRIAL BUILDING DESIGN, CONSTRUCTION OR FUNCTIONALITY CHANGE IN 2021?
would experience a reduction of joint mileage from 32 to six — decreasing the number of joints
to repair and creating a smoother work surface for forklift operators and workers in the building.
FELIX SOTO
ASSOCIATE DIRECTOR OF RESEARCH
COLLIERS INTERNATIONAL (WOODBRIDGE/PARSIPPANY)
Social distancing orders have accelerated the shift toward e-commerce purchases, a trend that will likely stick and be a permeant part of consumer buying habits. This will eventually increase demand for final-mile distribution and
cold storage space, both of which are in short supply. For example, Amazon recently announced
it plans on opening 14 final-mile delivery stations in New Jersey in 2020. Design changes are required for these distribution centers, as they typically require more parking and truck courts.
Occupiers may fast-track their adoption of robotics within warehouses to minimize close human contact and increase efficiency. Warehouse users have spent the last several months rethinking their layouts to make social distancing possible, however these measures affect productivity. Automation and robotics can
play an important role in this environment to ensure worker safety and boost production.
TIM CADIGAN
SENIOR VICE PRESIDENT AVISON YOUNG (MORRISTOWN)
Follow Amazon! More automation is coming into
warehouse/
distribution
and the need
for parking is
paramount in
urban markets.
Warehouse
pricing and
COVID-19 may push many corporate managers of mid and smaller cap companies to follow the trends of larger users and invest into more automation, maximizing the utility of their footprint and expediting delivery times.
This also mitigates future risks associated with employee health and rising labor costs. Creative parking solutions will be needed for delivery and employee vehicles within the densest markets as land costs continue to soar. Both factors will push developers, architects, engineers and contractors to come up with solutions and cost containment to improve design for automation including adding mezzanines, standardizing fewer
joints in floors, using lighter materials to build multistory warehouses and finding more efficient ways to park delivery vehicles.
JOEL BERGSTEIN
PRESIDENT
LINCOLN EQUITIES GROUP (EAST RUTHERFORD)
For 2021 I do not believe that warehouse construction or functionality will change much. I think the value of the efficiency of the modern warehouse design is being
recognized now and class B and C warehouses are coming slightly out of favor even in great locations. More so than ever, having an
abundance of parking is paramount. I think the one trend we may see is an increase in need for refrigerated and freezer space. Historically, the credit of some of these tenants has made that industrial sector tough, but there could be some strategic consolidation that will bolster the credit of much of the smaller players. We continue to develop and have great leasing activity even through the pandemic. We believe that, even in 2021, supply will still not meet the demand for industrial space in the Northeast. RE
       JEFF MILANAIK
PARTNER, NORTHEAST REGION
BRIDGE DEVELOPMENT PARTNERS (PARSIPPANY)
Even if and when a COVID-19 vaccine arrives, I believe we’ll continue to see social distancing, mask-wearing and appropriate workspace protocol — such as daily on-site health surveys, temperature scans and sanitizing stations — for the foreseeable
future. The pandemic has expedited e-commerce’s already rapid growth, and we’re seeing higher demand
for industrial facilities than almost
ever before. Because of those dynamics, we’ll need to alter the design of these developments
to separate different core components
within warehousing spaces, reducing density and accommodating social distancing guidelines in the process. We could also begin to see more contactless doors being installed,
as well as upgraded air filtration systems. For the same reasons, we’re incorporating more square footage for designated office space within these buildings, and are seeing requests from large e-commerce tenants for increased vehicle and delivery truck parking. We expect even smaller shipping and logistics players will require similar expansions as last- mile delivery needs continue to grow.
JESSE HARTY
SENIOR VICE PRESIDENT, MARKET OFFICER
PROLOGIS (EAST RUTHERFORD)
The future of industrial building design incorporates sustainability, technology and
functionality
to increase
operational
efficiency
and elevate
employees’
experiences
at work. For
example, in New Jersey and New York, Prologis is currently working toward 50 megawatts of new
solar. Prior to COVID, we had also started to add touchless features in restrooms and breakrooms. While the original purpose was ease of use and convenience
for employees, this shift will prove even more necessary in an environment of increased sanitary requirements.
In 2021, we’ll also see a rising need for outdoor storage and the use
of rooftops as parking spaces, as e-commerce adoption accelerates and drives demand for more employee parking, trailer parking and fleet management.
On the construction side, Prologis is deploying Reduced Joint Slab concrete to increase joint spacing from 12 feet, 6 inches to 125 feet. What that means is that in a 1 million-square-foot building, we
        Industrial market experts expect to see an even greater need for vehicle and truck parking at warehouse and logistics buildings in 2021.
   




































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