Brownfield and Post-Industrial Land Development: A Sustainable Trend in Industrial and Logistics Real Estate

Based on our interaction with business partners active in the #BuiltEnvironment sector all around #Europe we see a trend of increasing demand for warehousing in well-connected urban areas; at the same time, the supply of construction land is dwindling, and competition for investment sites is intensifying.

Brownfield and post-industrial land development is becoming increasingly popular among real estate developers as an alternative to greenfield development. In this article, we'll explore briefly the trends and benefits of brownfield and post-industrial land development for industrial and logistics real estate.

Trends in Brownfield and Post-Industrial Land Development

Demand for warehouses in urban areas has been growing for the past few years. However, finding vacant land in urban areas is increasingly challenging. Available plots are allocated mostly for residential or public building projects. As such, local authorities are increasingly disinclined to allow industrial projects in urban areas.

Brownfields and post-industrial sites are ideal alternatives for developers facing a shortage of land for warehousing projects. Local authorities tend to be immediately supportive of such investments as well.

Brownfield redevelopment, however, has its challenges. Compared to greenfield development, brownfield development requires more time and money, depending on the location, previous land use, and the type of business. Developers need to allow additional time for obtaining demolition permits, knocking down existing buildings, conducting site audits, mapping soil contamination, and developing Environmental Remediation Plans.

Redevelopment work typically includes soil remediation, introducing new plant species, and recycling or reusing demolition materials. This reduces the consumption of energy, water, and other resources and fits in with the principles of the closed economy, making these sites more energy-efficient and environmentally friendly.

Brownfield and post-industrial land development now account for a significant portion of industrial and logistics real estate developments. In some European countries, brownfield sites make up more than half of all projects under development.

Benefits of Brownfield and Post-Industrial Land Development

Brownfield projects are attractive to developers for several reasons:

• They are usually well-located, close to roads and key transport nodes, and have utility connections.
• They also represent marketing value, as former industrial sites could be used by tenants in the same industry for communication purposes.
• Brownfield projects marry business and socially responsible measures, delivering meaningful value to cities, the natural environment, and developers.
• These types of developments fit in with the principles of the closed economy and are more energy-efficient, reducing their harm to the environment.
• Additionally, the remediation of contaminated sites during the development process can help reduce soil and groundwater pollution.
• Brownfield and post-industrial land development can also bring economic benefits to local communities. By revitalizing abandoned industrial sites, developers can create new jobs and generate tax revenue for local governments. In addition, these developments can help attract new businesses and industries to the area, further boosting the local economy.

Bonus: 5 takeaways with suggested actionable insights:

1. Consider brownfield and post-industrial land development as a sustainable and environmentally responsible option for industrial and logistics real estate development.
2. Incorporate sustainable practices into your projects, such as using renewable energy sources, installing rainwater tanks, and recycling and reusing building materials.
3. Conduct soil remediation, introduce new plant species, and recycle or reuse demolition materials to reduce the consumption of energy, water, and other resources.
4. Look for well-connected urban areas where brownfield and post-industrial land can be redeveloped for last-mile delivery, which is in high demand.
5. Work with experts in land reclamation and redevelopment to ensure that your project meets environmental and regulatory standards while delivering on your sustainability goals.

Key Terms used:

Brownfield land: Abandoned or underused industrial land that has the potential to be redeveloped for new commercial or residential purposes.

Post-industrial land: Land that was formerly used for industrial purposes and has since become vacant or underutilized.

Closed economy: An economic system that prioritizes the reuse and recycling of resources to minimize waste and reduce the impact on the environment.

Sustainable development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Environmental Product Declaration (EPD): A report that provides information on the environmental impact of a product or service throughout its life cycle, from creation to disposal.

Note: article was co-written by PropertyTalents with support from our AI Team