The next industrial revolution: national technology trends are driving innovation within the industrial market.

• Author: Webb, Gaylen

In the post-recession economy, businesses are laser focused on using technology and innovation to do more with less. This mandate for greater efficiencies can be seen in the industrial real estate market as well, where developers are using leading-edge technology as they design and build warehouse and manufacturing space to reduce construction costs, maximize space, streamline operations and take energy efficiency to the next level. These aren't your grandparent's dark, dusty warehouses. The industrial buildings of the 21st Century are wonders of engineering, filled with natural light, high-tech inventory systems and eco-friendly energy procedures.

THE BUILDING BLOCKS

It all starts from the ground up, with the use of high-performance building materials, built-in energy efficiencies and lots of natural light.

The changes are dramatic, says Jarrod Hunt, senior vice president of industrial services for CBC Advisors. "The new technology in lighting, heating and base building materials has changed construction, making buildings much more efficient--giving the finished building a longer physical lifespan, utilitarian function and reduction in operational costs for the tenants in the long term."

One notable change is the trend toward use of more natural light. Tenants want to create comfortable work environments for their people and they increasingly want to be more eco-friendly. So developers are incorporating higher ceilings, more windows, lighter interior colors and natural light into their buildings.

"Those concepts were not seriously considered 10 to 20 years ago," says Hunt. "I have sold buildings where you walk in and wouldn't know the lights are off because of the amount of natural light. With enough prismatic skylights, it appears all of the lights are on in the building during normal business hours, when in actuality the lights may be off."

Developers are starting to incorporate more solar power and other renewable energy sources. But unless the tenant demands it, the trend is slower in Utah than other areas. The state's low power rates contribute to smaller return on investment than in places like the West or East Coasts, where electricity rates can easily be double or triple of those in Utah. Nonetheless, Hunt says many tenants like the idea of generating more power onsite, so developers will keep adding solar to buildings as the demand grows. A popular trend utilizes the adjacent vacant land to connect buildings with commercial grade...