Chicago’s historical manufacturing roots have evolved into a dynamic hub for advanced technologies and sustainability; its commitment to innovation foundational to its economic future. A prime example is Chicago’s ambitious plan for a $20 billion, 150-acre quantum computing campus at the former U.S. Steel plant on the South Side or the former Texaco refinery in Lockport. This groundbreaking project will bolster Chicago’s position as a technological leader, attracting top talent and creating high-paying jobs. As the city continues to transform, its “Big Shoulders” mentality clearly remains the driving force behind its progress.

A spirit of innovation and adaptability  

Chicago’s on-going transformation extends far beyond its industrial and technological roots. The city’s office space landscape is undergoing a dramatic evolution. While garnering a well-earned reputation as a business hub almost since inception, Chicago is now redefining its workspace to accommodate the rise of hybrid and remote work. This shift, which began long before the pandemic, has ignited a wave of repurposing and revitalization within the city’s built environment. Mixed-use developments, blending residential, retail, and recreational spaces, are becoming increasingly common. This change is not just about improving the value of real estate; it catalyzes broader economic growth, reinforcing Chicago’s status as a premier destination for businesses seeking modern, flexible work environments.  

As a fellow Chicagoan, I’m immersed in the city’s energy and spirit daily. The tapestry of cultures, the resilience of our communities, and the unwavering belief in progress have shaped my family and me. Serving as Executive Managing Director of Stream Chicago is more than a role; it’s a privilege to contribute to this city’s dynamic story. Our team is deeply connected to Chicago’s heartbeat. We understand the evolving needs of our neighbors and businesses and are committed to building upon the innovative foundation laid by the generations before us. Together, we are creating a future where our city’s rich heritage inspires groundbreaking solutions and where the promise of tomorrow is brighter than ever.  

Capturing opportunity 

This deep-rooted commitment is exemplified by our recent acquisition of a four-building industrial portfolio totaling nearly 600,000 square feet of Class A space. The portfolio, encompassing properties in Buffalo Grove, Chicago’s City South, and Mokena, is fully leased to seven tenants. This strategic investment underscores the strong demand for premium industrial space in key Chicago submarkets and reflects the broader industrial resurgence driven by technological advancements, reshored manufacturing, and a growing emphasis on sustainability.  

Chicago’s strategic expansion of industrial parks, coupled with its pioneering adoption of smart manufacturing technologies, strengthens its position as a leading industrial powerhouse. This ongoing transformation, complemented by the city’s dynamic office space market, is a testament to Chicago’s unwavering commitment to innovation and economic growth. As Chicago continues to shape the future of industry and commerce, it remains a vibrant embodiment of the “City of Big Shoulders” spirit, poised to overcome challenges, capture new opportunities, and thrive for generations to come. 

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Unfortunately, this crisis is a complex mix of economic, social, and policy issues that have developed over decades, presenting a formidable challenge with no easy solutions. However, recent legislative progress at both state and local levels are creating opportunities to address the issue, particularly through affordable housing development. 

A prime example of such legislation is the recently enacted state Senate Bill 4, known as the Affordable Housing on Faith Lands Act. This groundbreaking measure permits the construction of affordable, multifamily homes on lands owned by faith-based institutions and nonprofit colleges—streamlining the permitting process and overriding local zoning restrictions.  

Similarly, the City of Los Angeles has introduced Executive Directive 1, which expedites the processing, clearances, and approvals for shelters and 100 percent affordable housing projects within city limits.  

These legislative efforts offer a promising avenue for forward-thinking investors to collaborate with churches and colleges, capitalizing on the “YIGBY” (Yes in God’s Backyard) movement by converting portions of their properties into much-needed affordable housing units.  

Collaborative efforts that serve a greater good 

The partnership between investors, religious institutions, and nonprofit colleges represents a powerful convergence of resources and expertise. Investors provide crucial capital and strategic insights, drawing on their extensive experience in development, while religious institutions and nonprofit colleges provide land and strong community ties, laying the groundwork for these initiatives to thrive. 

This collaborative model goes beyond addressing immediate housing needs; it fosters a holistic approach to community development. By combining their resources, these partners create vibrant, inclusive communities that drive sustainable change. 

As such, these legislative initiatives have bolstered our ability to collaborate with essential organizations throughout Orange County, exploring creative ways to use real estate to supplement charitable efforts while making a positive impact.  

For example, in partnership with National Core, we identified a site for a 71-unit apartment complex in Lake Forest, California, turning an aging office building into quality residences for individuals and families. These apartments, comprised of one-, two-, and three-bedroom units, cater to households earning between 30% and 60% of the area median income (AMI). 

The success of this venture has allowed us to pursue additional affordable housing projects in Lake Forest and beyond, aligning with our commitment to people, purpose, and passion in real estate. 

Incentives that support continued progress 

In addition to addressing the critical need for housing throughout Southern California, SB4 and Executive Directive 1 offer significant benefits: 

1. Corporations and private investors can achieve their Corporate Social Responsibility (CSR) goals, enhancing their brand image among socially conscious consumers.
2. Religious institutions and nonprofit colleges can diversify their revenue streams by leasing or selling affordable housing units. This financial flexibility supports essential social programs, infrastructure improvements, and scholarships, ensuring sustainable growth and long-term success.
3. Investors receive financial incentives, including tax credits, subsidies, grants, and increased access to the Low-Income Housing Tax Credit (LIHTC). The streamlined approval process reduces bureaucratic delays and associated costs, making affordable housing projects more attractive and financially viable.

Investing in affordable housing isn’t just a charitable act—it’s a strategic endeavor that promises substantial returns with a lasting positive impact. As purposeful investment gains importance, California’s approach to addressing homelessness is poised to tackle housing challenges while igniting social progress and economic prosperity.

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Texas Economy Positioned Well  

Hartzell highlighted how the university is reshaping the perspective on degree attainment, emphasizing the integration between different schools, such as business and engineering, which enables students to forge a unique path aligned with their goals. “Students now want to bundle things together to add and enrich a degree,” he noted. Hartzell underscored UT Austin’s proactive role in driving innovation, fostering economic growth, and advancing healthcare, positioning the university and the state as leaders in several high-impact sectors. 

“None of this would be possible without Texas’s booming economy,” Hartzell continued, citing corporate relocations such as Tesla’s gigafactory and Samsung’s semiconductor partnership with UT Austin as key drivers. He attributed this growth to Texas’s business-friendly environment, rapid project execution, abundant talent pool, and favorable tax burden. 

The university capitalizes on this economic momentum, solidifying its status as a flagship institution in a state boasting the 8th largest economy globally. “I think Texas has a chance to be that fourth destination behind the cities like Boston, San Diego and the Bay Area,” he envisioned. 

Future Development and Healthcare Advancements 

Hartzell elaborated on the strategic utilization of UT Austin’s expansive real estate assets, emphasizing their role in attracting businesses and facilitating faculty housing development. With substantial land holdings, the university is poised to cultivate corporate collaborations, enriching its educational and research capabilities. This concerted effort to leverage its real estate assets forms a key component of UT Austin’s overarching strategy to bolster growth and enhance its economic impact. 

“That land for us is like money trapped in dirt,” he remarked, underscoring the immense potential inherent in these land holdings. 

Furthermore, Hartzell discussed a groundbreaking $2.5 billion partnership with MD Anderson to establish two state-of-the-art hospitals on the UT Austin campus. This ambitious initiative seeks to diminish the need for patients to seek complex medical treatments outside of Central Texas while harnessing UT Austin’s engineering and data science expertise to drive healthcare innovation. Through endeavors such as utilizing AI to develop personalized treatment models, Hartzell envisions this partnership catapulting Austin into prominence as a pivotal hub in the life sciences sector. Such initiatives, he believes, will fortify Austin’s competitive standing against established centers like Boston and the Bay Area. 

Healthcare Feeds into Technology, Which Feeds into Energy 

Hartzell envisions a future where Texas, particularly Austin, emerges as a formidable tech hub, poised to rival established centers such as Boston, San Diego, and the Bay Area within the next 10 to 20 years. He highlighted ongoing collaborations between universities and tech giants like Samsung to establish shared training facilities tailored for the semiconductor workforce, focusing on advanced chip packaging techniques. 

Moreover, Hartzell underscored the critical role of energy in powering the technological advancements driving this burgeoning tech ecosystem. Texas’s unwavering commitment to diverse energy sources, encompassing oil, gas, solar, wind, and nuclear power, places the state in a uniquely advantageous position for future tech developments. 

UT Austin is engaged in groundbreaking projects to further bolster Texas’s technological prowess. For instance, initiatives such as developing a digital twin of a molten salt nuclear reactor aim to streamline regulatory processes for emerging nuclear technologies. Hartzell expressed optimism regarding the potential of modular nuclear reactors and innovative battery storage solutions, highlighting their significance as integral components of the state’s energy mix. 

In jest, Hartzell humorously remarked, “If I can have an 11-2 football team and $80 (barrel of) oil, my job is easy.” He emphasized his bullish outlook on Texas, citing the state’s abundant energy resources as a critical advantage that will continue to attract investment and drive technological innovation. 

Moving to the SEC 

Amidst the fervor of the Austin crowd, the discussion naturally turned to UT football. Hartzell provided insights into the decision to transition UT Austin from the Big 12 to the SEC, driven by the imperative to remain competitive amidst evolving dynamics in college sports, including media rights, athlete compensation, and student mobility. 

The transition aims to safeguard the university’s athletic franchise while bolstering revenues through high-profile home games, which wield significant influence over the athletic budget. 

“And then this year when Georgia comes, and it’s F1 weekend, hotel rooms spike,” Hartzell quipped, injecting humor into the conversation. “So, if you have a hotel…you’re welcome.” 

A State of Potential 

President Hartzell’s insights not only illuminated the vast opportunities within Texas but also emphasized how the state’s flourishing economy, strategic initiatives, and collaborative spirit serve as a blueprint for driving positive change and shaping the future of CRE. As stakeholders navigate this dynamic landscape, they have the opportunity not only to seize current trends but also to influence outcomes and transform perspectives, thus sculpting the industry’s trajectory for years to come.  

Texas continues to stand as a beacon of growth and innovation, offering boundless possibilities for those poised to embrace the journey ahead.

—

Thanks to all who attended our 2024 Texas State of the Market event, with special thanks to our sponsors. We look forward to seeing you at our East State of the Market event this fall.  

Knight Commercial | Peak Parking | Heritage Title Company | Munsch Hardt | Professional Janitorial Service | rand* construction | CoStar | Kimley Horn | RealtyAds | Scout Security Group | Texas Fifth Wall Roofing | Fenagh Engineering & Testing | Powers Brown Architecture 

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Derek graduated with a degree in computer programming and worked as a consultant for PricewaterhouseCoopers. It became clear that technology was not his passion, and he knew a change was in order. That was when the world of CRE caught his eye. “I was young, competitive, knew I wanted to be in a more ‘eat what you kill’ business, and probably a bit naïve,” reflects Derek.  

He started as an analyst at CB Richard Ellis and transitioned into brokerage, moving to Endeavor as a leasing agent one week before September 11th, 2001.  Although it was trying time to be 100% commission, the tough market provided invaluable learning opportunities that propelled his career. In just five years, Derek became the head of Endeavor’s office leasing group. 

It was then that Derek connected with Allan Young, Executive Managing Director and Partner for Stream San Antonio, cold calling him to explain why he should hire Derek and his team to lease a building in Austin, where Stream had no presence. The conversation took an unexpected turn, though, when Allan asked Derek if he’d be interested in opening an office for Stream, leading Stream’s expansion into the Austin market. 

Risk-averse, with a “nothing to lose” mentality, Derek was all in. It was a bold move. “Honestly, it wasn’t necessarily some grand, thought-out plan. I simply thought, why not me?” 

Embracing opportunity.  

Derek’s vision wasn’t solely about establishing a presence in Austin; it was about creating something meaningful with a platform set up to do big things outside of just Texas. “There was something special in the atmosphere. It’s as if we all knew we were building something different and were genuinely excited about it–challenges and all,” recalls Derek. 

Today, Stream boasts 1400+ real estate professionals, covering some of the most active markets coast to coast.  

Drawing on his proven track record and hands-on experience in pioneering prosperous new markets, Derek assumed the position of Head of New Markets & Partner at Stream in 2020, a role that still generates excitement. “In an industry where our competitors are cutting resources, we are uniquely set up to provide our clients and teams with an advantage,” says Derek. “Talent is efficient and always gravitates to the best opportunities.  That is Stream, and it’s a fun place to be right now.”  

Exploring new frontiers.  

In the last several years, amid market turmoil, Stream has brought on three new markets, including Nashville, Phoenix, and South Florida. Yet, growth isn’t Stream’s primary driver. “We want to be the very best in the markets and lines that we offer, which is why we invest heavily in our new markets and talent,” notes Derek. “We aren’t just signing people on and then leaving them to figure it out– that’s not a formula for success.” 

Yet, Stream does continue to grow, even in an uncertain economy, a phenomenon Derek attributes entirely to the company’s distinct culture.  

“It all boils down to our people. When introducing new markets, we handpick individuals like Greg Katz, Tiffany Winne, and Rob Lowe, knowing they’ll seamlessly integrate into our culture and share our deep commitment to clients and teams,” says Derek. “As we enter new markets, we want to ensure we’re continuing to provide value for our clients; we’re not interested in simply checking dots off on a map.”  

As Stream increases its footprint and influence, Derek’s unwavering commitment to excellence serves as a guiding beacon for the entire organization. With Stream, it’s not just about navigating uncharted territories; it’s about actively shaping the future of commercial real estate, one visionary stride at a time. 

Interested in being a part of Stream’s story? Reach out to Derek Land today.  

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One alternative to the boom-and-bust nature of private markets has been the CHIPS and Science Act of 2022, which authorized $10 billion for the Regional Technology and Innovation Hubs Program (Tech Hubs), which seeks to grow industries of strategic importance and plant the seeds of future tech hub growth in regions outside of Silicon Valley. These technology hubs partner with state universities and local entrepreneurs to attract and retain graduates in more rural and affordable areas, creating these highly specialized business clusters. Below are some industries and locations covered by this new era of government-guided industrial policy:  

The Nexus for Advanced Resilient Energy (“SC Nexus”) This hub is in South Carolina, in the tightly connected MSAs within the Upstate and Midlands regions (Greenville, Spartanburg, Anderson, Columbia, and surrounding counties). This is an Advanced Energy hub, specifically developing and driving innovative research in designing and manufacturing control systems fundamental to a clean energy transition. Of significant importance is:  

• Advanced Manufacturing of small modular nuclear reactors, offshore wind turbine manufacturing, hydrogen production and storage, and development of batteries and photovoltaic solar panels.  
• Battery innovation and testing to develop and test the next-gen stationary battery components for large-scale energy storage. This includes vanadium flow, self-healing silicone anodes, and improved thermal safety technologies.  
• Grid re-engineering to develop and demonstrate new products using grid-storage AI and ML to enable efficient weather and cyber-resilient distributed systems.  

Central to this region’s success is the Savannah River National Laboratory in Jackson, South Carolina, along with a growing list of established private sector companies, such as Bosch, BMW, Duke Energy, Pomega, and Westinghouse, looking to take advantage of the substantial federal grant funding and workforce growth and development projects currently taking place in this area.

According to Rob Williams, a Vice President with Stream Carolinas, recent technology companies to establish operations in South Carolina include EnerSys, Omron Automation, Tesla, Mojave Energy Systems, TIME Bicycles, and Erchonia Corp. “South Carolina has proven itself effective in attracting top technology firms due to its low cost of living, friendly business environment, and commitment to growing the technology industry through programs such as SC Nexus,” explains Rob. “Put simply, South Carolina is a place where companies and their employees can thrive.” 

Texoma Semiconductor Innovation Consortium (TSIC) This hub offers a decentralized model of semiconductor chip production. By exploring the manufacture of bare semiconductor wafers in “Fablets,” which are mobile and distributed labs containing semiconductor manufacturing, production, and testing, it is possible to have a highly reactive semiconductor supply chain. This is especially important for the military and defense industries because it provides multiple chip redundancies and eliminates disruptions.  

Southern Methodist University leads this tech hub in Dallas, encompassing 29 counties in North Central Texas (including Dallas and Fort Worth) and Oklahoma. The North Texas Region is the birthplace of integrated circuits and has an existing advanced ecosystem of telecommunications and defense contractors. Companies involved in the TSIC area include Fujitsu, Lockheed, Toyota, GlobalWafers, and Texas Instruments, to name a few. The TSIC tech hub will strengthen existing business relationships between industries and companies dependent on stable semiconductor supply chains. The Fablet concept is looking to disrupt the production of modern microprocessors, the most complex devices ever invented or manufactured by humans.

Randy Cooper, Vice Chairman of Stream’s Tenant Representation Division, has observed the direct impact. “The buzz around tech is palpable, especially in North Texas, where firms are investing billions,” Randy notes. “For instance, the investment in Sherman, Texas by Texas Instruments could reach $30 billion. Consequently, there’s a growing interest from tech companies to locate nearby, fostering collaboration in research, development, and employment opportunities. Some in Congress are even comparing the semiconductor industry’s expansion in Texas to ‘the most significant technology revolution since the Manhattan Project.'” 

South Florida Climate Resilience Tech Hub – This region is the most exposed geography in the United States to climate-driven catastrophes, from sea level rise to hurricanes. As a result, this hub focuses on sustainable and resilient infrastructure, from extreme building codes, clean cement, and marine infrastructure to artificial reefs and seawalls to help prevent or mitigate future climate disasters. This hub partners with Miami Dade College and Florida Memorial University, venture capital funding, and 20 commercial partners to develop solutions to future climate problems. 

“Miami is rapidly emerging as a prime destination for tech companies,” notes Carlyle Coffin, Senior Vice President at Stream’s Miami office. “Major players are establishing headquarters here, while smaller firms are also flourishing. With Florida attracting more young professionals, the industry’s growth is inevitable. Apple’s recent announcement of a new 45,000 square foot office in Miami is a testament to this trend.”

In much the same way that life science laboratories sprung up in key locations (San Francisco, San Diego, and Boston) to meet the growing demand of venture capital-funded biotechnology startups, there will also be a need for creative office and R&D laboratories in these key areas focusing on these key technologies in the future. With the United States shifting priorities and providing a strategic roadmap (along with generous federal funding, grants, and workforce development plans) for industries to promote the goals of national security and climate change resilience, there is much opportunity for industrial and office developers to explore options in these hubs and ride the next wave of federal-assisted new technology startups.  

The post Unlocking CRE Opportunities in Today’s Technology Landscape appeared first on Stream Realty Partners.

Invent Here, Make Here Act 

An executive order to prioritize domestic manufacturing of innovations developed in the United States with United States federal funding. This is a continuation of government policies enacted in the 1980s that later spurred the internet boom and led to American technology dominance, the Bayh-Dole Act. This act enabled universities, national laboratories, and researchers to patent, license, and collect royalties on inventions developed with federal assistance, much of which was initially part of DARPA, the Defense Advanced Research Projects Agency. This new “Invent Here, Make Here” focus may do what this older act did for space, robotics, advanced pharmaceuticals, artificial intelligence, and other cutting-edge industries for internet startups and social media companies. 

Chips and Science Act  

A strategic move to reclaim U.S. leadership in semiconductor manufacturing and related industries by providing $50+ billion in semiconductor research and $39 billion in manufacturing incentives, as well as generous tax incentives to secure domestic chips production and rebuild the U.S. semiconductor supply chains. These manufacturing facilities will act as catalysts to create high-tech clusters of specialized labor pools, supplier linkages, and knowledge spillovers to related industries in those select markets.  

Tech Hubs Program 

Initiated under the Chips and Science Act, the Tech Hubs Program aims to foster innovation, strengthen manufacturing, and create quality jobs in 31 tech hubs across 32 states and Puerto Rico. These hubs will work in conjunction with state colleges and focus on industries of strategic economic interest, such as autonomous systems, quantum computing, biotechnology, clean energy production, semiconductor manufacturing, and more. The program aims to spread innovation away from the traditional coastal cities, ensuring that nearly three-quarters of the benefits will be in small and rural areas. The goal is for these small areas to specialize and attract talent and labor to spur specialized manufacturing clusters in traditionally underserved communities.   

Additional U.S. Incentives 

The U.S. is also enacting direct subsidies, tariffs, and executive orders that ban U.S. investments in sensitive industries overseas. Some of the indirect impacts of these increased trade barriers include:  

1. Increased Foreign Direct Investment: German companies such as Volkswagen, BASF, and Mercedes-Benz have announced increased investment in the United States due to tax credits and loans as part of U.S. industrial policy. These increased investments reflect a strategic shift in deteriorating conditions between Germany and China and broader challenges Germany faces within the EU, such as overregulation, high production costs, limited energy availability, and tight skilled labor markets.
2. Nearshoring through Mergers and Acquisition: In December 2023, Nippon Steel announced it was willing to purchase U.S. Steel in a $14.1 Billion acquisition. This drive by Nippon Steel is to expand steel production in the U.S. to take advantage of U.S. infrastructure expansion while avoiding the 25% tariffs imposed on foreign steel imports. Foreign mergers and acquisitions are likely to become more frequent as foreign companies look to acquire U.S. operations to gain market access, avoid increasing trade restrictions, and take advantage of U.S. subsidies while shortening supply chains and increasing resilience.    

With a focus on increased U.S. manufacturing based on an economic decoupling with China, public expenditure on infrastructure and energy investments, and a do-what-it-takes attitude to maintain U.S. global dominance in research, development, and the commercialization of technology innovations, the government is playing a more significant part in directing the economy, providing opportunities for forward-thinking CRE investors, developers, and tenants alike.      

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The 2023 CPE Influence Awards include:  

Broker of the Year: Randy Cooper  

At the heart of Stream’s success is the dedication of individuals like Randy Cooper, who has been recognized as a Broker of the Year. Randy’s exceptional skills, market insights and client-focused approach have set him apart as a leader in this field. This recognition not only reflects Randy’s achievements but also highlights the strength and expertise of the entire Stream team.   

Best Development, Office: RiverSouth  

Stream is proud to have been recognized as one of the Best Developments in the Office category with the acknowledgment of RiverSouth. This project represents the seamless blend of design, strategic location and innovative functionality. The recognition from CPE underscores Stream’s commitment to delivering top-tier developments that redefine the landscape and enhance the communities we serve.  

Most Effective Property Management Program: X2  

Exceeding expectations and creating experiences lie at the core of Stream’s property management philosophy. Winning the award for Most Effective Property Management Program with X2 affirms our commitment to providing unparalleled service to property owners and tenants alike. X2 represents a culmination of cutting-edge technology, strategic planning and a client-centric approach that sets a new standard in property management.  

Humanitarian Award: Stream Support Foundation  

The recognition of the Humanitarian Award for the Stream Support Foundation (SSF) holds special significance. The foundation’s holistic support, extending beyond financial aid to donating unused sick time during critical periods, exemplifies our commitment to fostering a compassionate workplace culture. This prestigious award reflects our unwavering dedication to the well-being and resilience of our Stream family.  

For a full list of CPE Influence Award Winners, please visit here.  

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Case in Point: The CHIPS and Science Act of 2022.

The CHIPS and Science Act of 2022 provides $280 billion in new funding to boost the domestic research and manufacturing of semiconductors and related technology in the U.S. This has jump-started a massive increase in manufacturing spending, which has doubled since the end of 2021.

At an annualized rate, more than $140 billion in manufacturing construction spending is occurring to produce new high-technology manufacturing plants. Nearly half of this construction spending is concentrated in Arizona and Texas, which are quickly becoming the fastest-growing centers of U.S. manufacturing. Since 2020, the manufacturing workforce of Arizona has grown by 20,000 (9%), with Texas adding 114,000 manufacturing jobs (13%) over this same time period. Once these high-technology manufacturing plants are built, new business ecosystems will grow, with these manufacturing clusters expected to attract additional employment and investment dollars.

While this surge in manufacturing construction spending will lead to increased domestic output in the future, there is already strong demand for U.S. manufactured goods, with new orders for capital goods from domestic manufacturers at record highs.

From post-pandemic supply chain resilience to increasing trade tensions with Russia and China, macroeconomic forces have led to increased federal investments in rebuilding the U.S. industrial base. This new focus on industrial policy seeks to reverse decades of offshoring and outsourcing and will necessitate large injections of capital into U.S. manufacturing.

Demand for U.S. manufacturing expected to positively impact other industries as well.

These high-technology investments will be concentrated in a handful of regions, and while they may be dominated by big-name companies like TSMC and Intel, many thousands of smaller companies will be needed downstream to support the growth of these high-technology clusters.

Since our current logistics and energy infrastructure was not designed to handle the demand of this increased manufacturing boom, additional investment will be required in both energy infrastructure and changing logistics patterns for roads and railways to bring raw materials in and ship finished goods out, creating indirect growth in seemingly unrelated construction and manufacturing companies. This includes the CRE industry, which will see increased activity to support growing demand.

The next 40 years of manufacturing in the U.S. will look nothing like the previous 40. We are currently transitioning to what could very well be the second U.S. industrial revolution.

Stay tuned!

The post Is the U.S. Entering its Second Industrial Revolution? appeared first on Stream Realty Partners.

In 2022, the cold storage industry was valued at $119.7 billion, with estimates indicating the industry will reach $331.5 billion by 2031. Likewise, the global food processing market was valued at $106.9 billion in 2022 and is expected to grow 5.5% annually through 2030. This rapid growth, combined with a shifting economy, has created several challenges for food processing and cold storage users, who are tasked with navigating evolving consumer demands, higher capital costs, higher labor expenses, labor shortages, strict regulations, and more while driving profitability.   

With so many components to consider, and the cost of capital high, it can seem almost impossible for users to develop a strategy that sets them up for success. 

For example, the total cost for food & beverage or cold storage operations can range from $300-$1,000+ per square foot—substantially higher than the approximate $150 per square foot needed for a standard industrial or manufacturing building.  

While this includes the price of equipment, automation, racking, design, construction, land, and the higher density requirement needed for storage and services (blast freezing, palletization, and the use and development of alternative products), the cost per pallet position or the cost of goods sold for these specialty businesses is critical to right-sizing the footprint to maximize the ROI of the real estate solution. 

This is why today’s market requires a shift in its approach to food processing and cold storage operations, one in which each business component—from site selection to production, processes, and future growth—is assessed holistically to create complete alignment towards clearly defined goals.  

Conducting business differently than before. 

From startups to large private corporations, real estate solutions must focus on operational efficiencies and flexibility for long-term needs. Since labor, transportation, and raw materials account for the highest costs for any food processing and cold storage business, process and procedure must transcend any one aspect of operations—supporting the larger financing arm through exemplary planning that meets consumer demands and company objectives.  

Additionally, strategic, built-to-suit developments should align with production, in-house logistics, distribution, and long-term objectives to ensure the development is conducive to delivering the best possible outcome and options for the overall business. This all-encompassing approach to food processing and cold storage operations provides: 

1) A custom space specific to food processing and cold storage specialty needs,
2) Creative capital solutions to allow for investment in the respective business while fulfilling obligations, and
3) Future growth and expansion capabilities. 

Delivering value, driving results. 

As a result of explosive growth in these specialty cold and food market segments, the need for project delivery often outpaces the market expertise necessary for success. To deliver valuable results, each program or project must have the expertise to navigate through completion to operational commencement, diving into how each project or program interacts with other functions such as supply chain, production, security, and human resources. 

By developing plans complete with transportation analysis, labor analysis, facility planning, incentives, cost and time frame analysis, design, construction, equipment, commissioning, and environmental initiatives, Stream’s National Program Management team brings multiple company departments together with a technical expertise that provides a true, end-to-end real estate solution—building resiliency in a client’s existing or growing network.  

With cold storage and food processing on the rise and economic uncertainty afoot, companies must move beyond the confines of a traditional business approach to remain competitive, capturing opportunities with creative solutions that begin with the business program first, then real estate.  

Tom Porter is Vice President and Food Processing and Manufacturing Lead for Stream’s National Program Management team. His background includes leading occupiers such as Monin Gourmet Flavourings, Mycoworks, and Chick-fil-A through the complex requirements of food and beverage facilities—aligning in-house logistics management, production, and distribution with the development or renovation of a facility.  

Bill Moultrie is Vice President and Industrial Cold Storage Lead for Stream’s National Program Management team. His extensive background includes real estate, development, design, construction, and equipment integration within the cold storage industry, working with such corporations as Chick-fil-A, Primal Pet Foods, Gourmet Foods International, and General Mills.  

The post Food, Beverage, and Cold Storage: Creative Solutions That Drive Growth appeared first on Stream Realty Partners.

Our brand refresh was led internally by a group of dedicated marketing professionals from across our 15 markets. A year-long endeavor, the team worked tirelessly to capture the unique ethos and culture of Stream and its people. The results of this creative collaboration: genuine messaging and a vibrant brand as unique as our company.

What has remained unchanged is Stream’s purpose-built and people-driven business model, applying insights, innovation, and creativity that allows our talent to act with speed and precision, uncovering opportunities and providing solutions that exceed expectations.   

In an industry and economy that is constantly evolving, Stream is making its mark.  

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