THE MOST QUALIFIED DESIGN-BUILD PARTNER FOR SUCCESSFUL

INDUSTRIAL WAREHOUSE DEVELOPMENT

From the most experienced players to those looking to enter the space for the first time, ARCO is helping developers take advantage of the rapidly growing industrial market.

Because industrial developments have the potential to be especially challenging, partnering with the right contractor is essential for success. ARCO offers the experience and expertise needed for a seamless design and construction process. Our comprehensive preconstruction and site selection services, building specifications expertise, value engineering and design flexibility, and knowledge of end-user needs ensure that potential issues are addressed in a project’s earliest stages and results in the most cost-effective and functional final product.

ARCO is unique in that we offer preliminary design at no cost to our customers to remove the risk of substantial upfront costs. Our delivery method addresses today’s challenging building environment through integrated design and construction solutions that allow for early material procurement resulting in reduced risk and project durations.

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A BOOMING INDUSTRIAL MARKET

End-users, especially e-commerce retailers, seeking to expand their distribution networks nationwide in response to consumer online shopping trends and same day delivery expectations sparked major growth of the industrial market over the past year. While this consumer driven demand was onset by the Covid-19 pandemic, it is not expected to slow down anytime soon. In fact, in addition to reporting record high absorption rates over the past 12 months, CBRE expects growth to continue for the next 5 to 10 years.

Additionally, developers are securing tenants more and more quickly. While 50% of industrial developments are still constructed on a speculative basis, most are leased prior to completion. The influx of demand has also kept capitalization rates low, demonstrating the willingness of investors to remain aggressive despite today’s market challenges. As growth continues at a staggering rate, entering the industrial market for the first time is becoming less risky and more advantageous for traditional commercial, office, retail, and hospitality developers.

Being design-build experts with a focus on warehouse development, we felt very comfortable in choosing ARCO as the contractor for Marcus Partners' first ground-up industrial warehouse in Franklin, MA. With national offices and subcontractors, they were able to use their resources to secure the most competitive pricing and vendors. The result was an on time, on budget, fully leased, class A industrial warehouse to add to our growing portfolio.
Josh Berman, SVP of Construction

MARCUS PARTNERS

SITE SELECTION & FEASIBILITY ANALYSIS

Site selection is becoming increasingly critical in the industrial facility development process. In addition to growing demand, many end-users are seeking prime location sites to meet next day delivery expectations. This has made challenging sites the new norm, with brownfields being transformed into distribution hubs and industrial developments taking place near urban areas.

ARCO’s site feasibility services empower developer clients to select the very best site for their facility. By providing site specific cost information prior to construction, we help clients make decisions with full knowledge of the impact.

Pictured above: 150-acre former steel mill brownfield site in Baltimore, Maryland where ARCO has partnered with TradePoint Atlantic and Scannell Properties to complete 12 projects totaling more than 4.5 million square feet. 

DESIGN & CONSTRUCTION SPECIFICATIONS

Floor systems, exterior wall types, structure, bay sizing, building systems, and site design are all elements that should be explored in the earliest stages of an industrial project to ensure the most functional and cost-effective facility.

Space utilization, pre-existing site conditions, schedule needs, and more can all play a role in determining the most advantageous option for each of these elements. ARCO is actively engaged throughout the design and beginning stages of a project to ensure the very best design and construction decisions are made. This essentially eliminates unforeseen issues and costly change orders that could affect lease rates and tenant occupancy once construction begins.

Floor Systems
Exterior Wall Types
Building Structure
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Bay Sizing
Building Systems
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Site Selection & Design

VALUE ENGINEERING & DESIGN FLEXIBILITY

Design flexibility is more important than ever as the need for logistics space with potential to accommodate a variety of end-users increases. By choosing to add incremental costs into a speculative build, developers can create a facility with potentially higher returns and increased marketability to a broader range of clientele. Well informed upgrades can also decrease costs on tenant retrofits and increase speed to market.

For build-to-suit developments, designs that accommodate future growth and capacity increases are beneficial for end-users, especially those interested in incorporating future automation and technology. Adjusting initial designs for future technology, equipment, and automation upgrades will be more cost-effective and help eliminate operations interruptions.

ARCO’s ability to offer value-engineering solutions and design flexibility results in cost savings, as well as increased marketability. Because our experience spans all industry types, we understand the unique needs of end-users from pharmaceutical, to manufacturing, cold storage, consumer packaged goods, and everything in-between.

Pictured above: 119,000 SF flexible industrial facility for Calare Properties capable of accommodating warehouse, manufacturing, flex office, technology, and biopharmaceutical end-users. 

E-COMMERCE EXPERIENCE & EXPERTISE

It is important to understand the unique needs of e-commerce tenants, as they continue to play a major role in industry growth. Prime location, adequate space for automation, and speed to market should all be considered when developing a facility for e-commerce tenants. Difficult sites and accelerated schedules are the new norm as e-commerce retailers look to expand their distribution networks quickly and build in prime locations that may not be conducive to industrial development.

While the challenges associated with meeting the needs of e-commerce end-users can seem overwhelming, they can be overcome by partnering with an experienced contractor.

As the largest builder of distribution and warehouse space in the U.S., ARCO has supported the needs of major e-commerce players since the rise of online shopping. Each year, our customer base seeking to improve their delivery infrastructure has increased and never more than throughout the last few years. Because of our extensive experience and expertise, combined with our design-build process and ability to consistently deliver projects within accelerated schedules, our developer partners, as well as end-user clients, repeatedly count on ARCO to deliver their most e-commerce projects.

REPEAT CLIENT SPOTLIGHT: NORTHBRIDGE PARTNERS & AMAZON

ARCO recently partnered with repeat developer client, Northbridge Partners and repeat end-user client, Amazon to complete a 143,640 SF distribution facility in Littleton, Massachusetts. What began as a speculative warehouse for Northbridge was later renovated to accommodate Amazon’s specific needs including additional dock positions and parking, as well a 12,500 SF office. Additionally, the 10-acre site development required extensive site improvements including soil nailing and retaining walls, a new septic and leach field, as well as wetland protection measures.

This is the fourth project ARCO and Northbridge have partnered to complete, and just one of nearly 30 projects ARCO has completed for Amazon.

BEST-IN-CLASS TURNKEY SOLUTIONS

ARCO’s design-build approach allows us to determine construction costs significantly earlier than the traditional design-bid-build method. By working directly with the architect to ensure feasibility and design efficiency, all decisions can be made with full knowledge of their impact on cost and schedule at a much earlier date. This combined with our expert proposal delivery and national buying power allows pricing to be locked in and key materials to be secured immediately upon execution of a letter of authorization, mitigating risk and saving valuable schedule time.

ARCO is recognized by Engineering News-Record as the #1 largest domestic builder of distribution and warehouse facilities in the United States and the 6th largest design-build general contractor.