Thought Leadership: Alex Vulic on the Importance of Location for Industrial Users

In its June Question of the Month column, Heartland Real Estate Business asked real estate experts, including Alex Vulic, Vice President of Real Estate Development, what they see as the most important features being incorporated into today’s modern industrial developments.

Rather than features that are designed and built, Alex stated that the physical location of an industrial building remains its most important attribute. In expanding on his response, Alex shared that while many built features, such as loading bays, IT infrastructure or HVAC systems, can be changed or modified to meet a user’s specific needs, a location can’t be influenced by the developer or the user.

Emphasizing his point, Alex said, “We can add more loading bays to a building, but we can’t move the airport from one side of a city to the other.”

According to Alex, there are a number of location criteria that users consistently look for, including close proximity to a skilled labor force as well as to customers and suppliers, easy access to transportation infrastructure, strong economic conditions and tax incentives.

“Each of these criteria directly impacts a user’s operational efficiency and profitability,” he said. “Proximity to labor supports recruitment, retention and productivity. Proximity to customers and suppliers reduces shipping and logistics costs and improves speed of service. The latter, of course, requires access to transportation.”

Because location is so crucial to a user’s success, it merits users being measured, thoughtful and strategic and partnering with a developer who can provide the level of market insight and guidance required.

Said Alex, “Our job is to read, analyze and respond to market conditions, to have a strong sense of economic headwinds and tailwinds so that at the end of the day, we’re developing the locations that will spell success for users today and well into the future.”