Page 24 - RE-NJ

22 SUMMER 2025
ROUNDTABLE
TELL US ABOUT A NEW DESIGN OR CONSTRUCTION TREND
THAT YOU’RE SEEING IN THE INDUSTRIAL SECTOR
LANCE BERGSTEIN
CEO
LINCOLN EQUITIES GROUP
(EAST RUTHERFORD)
There are several trends impacting
industrial real estate and
development
including rising
costs, limited
land availability
and a fl ight
to quality.
Developers
are becoming
much more
strategic and effi cient in their design
processes, focusing on rightsizing
and delivering well-confi gured
spaces tailored to core market
needs, such as optimized loading
docks, clear heights and circulation.
While there hasn’t been a signifi cant
shift in the type of product being
delivered, the sector is in a holding
pattern, awaiting a broader demand
resurgence. Despite the hype,
artifi cial intelligence has yet to make
a measurable impact on industrial
operations or design.
requirements has become more and
more challenging. The use of BIM
(Building Information Modeling)
allows the contractor to coordinate
all the elements, including lighting,
steel, partitions and MEP systems,
to avoid costly beam penetrations.
It also helps coordinate timing and
identify potential confl icts across all
disciplines.
More and more general
contractors and subcontractors
are now employing full-time
BIM coordinators on staff as an
added benefi t to the client, which
ultimately decreases change
orders due to lack of coordination
and improves both schedule and
profi tability for all stakeholders.
On the construction side, trade
partner availability remains healthy,
allowing us to maintain schedule
and budget certainty and negotiate
better value. In many markets,
though land costs remain high,
industrial construction costs are
holding steady or even trending
downward, creating favorable
conditions for development.
We are seeing a notable shift in
capital interest toward emerging
industrial submarkets outside
of traditional urban hubs. In the
greater New York region, for
instance, developers and tenants
are eyeing areas such as the Hudson
Valley and Northern Pennsylvania,
where land is more accessible and
cost-effective.
GREGORY HEWITT
SENIOR PROJECT MANAGER
MARCH ASSOCIATES
CONSTRUCTION (WAYNE)
As construction schedules tighten
along with project budgets and
controls, industrial warehouse
construction is
seeing a greater
use of 3D
modeling than
ever before.
Although this
technology has
been around
for some time,
large-scale warehouses with clear
height requirements for leasing
often confl ict with MEP systems due
to the long runs required throughout
the space.
Getting storm piping, electrical
conduits and ductwork across
vast warehouse fl oors while
maintaining proper pitch and
staying above the owner’s leasing
JASON HART
EXECUTIVE VICE PRESIDENT
PREMIER DESIGN + BUILD GROUP
(WOODBRIDGE)
Despite elevated vacancy rates and
pockets of economic uncertainty,
our outlook for
the industrial
sector remains
strong and
bullish. Demand
continues
to grow for
facilities that
are designed
to be fl exible and future-ready
buildings that can adapt to evolving
tenant needs and technological
shifts.
A key trend we are seeing
is futureproofi ng through
infrastructure and design
adaptability. Tenants are
increasingly seeking buildings
with enhanced electrical capacity
through microgrids, larger
switchgear, integrated solar arrays
and/or battery storage. Features
like preinstalled conduit paths,
increased fl oor load capacities and
greater clear heights are becoming
standard in the industrial sector.
These upgrades not only broaden a
building’s appeal to a wider tenant
base but also support long-term
asset resilience.
MICHAEL LEONDI
VICE PRESIDENT, DESIGN &
CONSTRUCTION
NORTH CENTRAL DEVELOPMENT
ROCKEFELLER GROUP
(MORRISTOWN)
As more prospective tenants re-
enter the market in late 2025 and
into 2026, expect to see increasingly
sophisticated and demanding
requirements across several core
areas: EV readiness, speed bay and
truck court depth, slab loading and
fl oor fl atness for automation, clear
height and trailer parking ratios.
Tenant expectations are evolving,
and new leases will refl ect these
priorities more explicitly.
Labor-friendly wellness features
also remain front and center, as
users look for ways to attract
and retain warehouse talent in a
competitive labor market. This
includes natural light, upgraded
break areas, transit accessibility and
even on-site fi tness amenities.
Another critical consideration
gaining momentum is curb appeal
and community integration. In some
jurisdictions, perception matters
more than ever, as municipalities
scrutinize industrial development
through the lens of economic
contribution and quality-of-life
impact. Buildings that demonstrate
operational excellence, thoughtful
design and public value will gain a
regulatory and political edge.
But the most transformative shift
underway is the explosive increase
in electrical demand — not just
from cold
storage or data
center users,
but across
traditional
warehousing,
logistics and
manufacturing
tenants. Power
capacity has emerged as a defi ning
constraint — and opportunity — for
developers.
Savvy owners and operators are
now future-proofi ng their projects
by acquiring land based not only
on location, but also on existing or
upgradeable utility infrastructure.
Being able to clearly articulate a
path to achieving high-capacity
power — along with reliable
timelines — has become a key
differentiator. In some markets,
speed to utility capacity is as
valuable as the ZIP code.
Forward-thinking teams are also
exploring alternative energy
solutions to unlock diffi cult sites or
reduce long-term operating costs.
This includes:
• On-site solar + battery storage
• Cogeneration (CHP) systems
• Fuel cells
• Emerging modular nuclear
solutions (such as SMRs) for
power-intensive uses
The ability to deliver outsized
utility capacity faster than your
competition will increasingly defi ne
who wins the tenant — and who
doesn’t. RE
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