Unlocking the Vertical Advantage: The Rise of Multi-Story Industrial Buildings in Orlando
In a recent episode of “Beyond Your Space Needs,” Amy Calandrino, Founder and CEO of Beyond Commercial, delves into a fascinating trend reshaping the industrial landscape in Orlando: multi-story industrial buildings. As we enter the third quarter of 2023, these vertical structures are becoming increasingly prevalent, reflecting a strategic response to limited land resources and evolving business needs.
A Vertical Shift in Industrial Real Estate
Historically, multi-story industrial buildings were more common in regions like Canada and certain parts of the United States. However, Orlando has only recently begun to embrace this innovative approach to industrial real estate. The advantages are multifaceted, and they’re reshaping the way businesses operate.
Economies of Scale and Vertical Expansion
One of the driving factors behind this shift is the need for businesses to expand vertically. With limited land availability in some areas, it’s often more cost-effective and space-efficient to build upward rather than expand horizontally. This trend is in line with the concept of “economies of scale” in which businesses aim to maximize efficiency and productivity.
A Surge in Building Permits
According to data from the Orlando Chamber of Commerce, there has been a 15% increase in the issuance of building permits for two-story industrial structures compared to the previous year. This uptick is indicative of the growing preference for vertical designs in Orlando’s industrial sector.
Tech Startups and E-commerce Fueling Growth
The Orlando Economic Research Institute reports a significant increase in demand for two-story industrial buildings, primarily driven by tech startups and e-commerce companies. Creative studios and similar businesses are also contributing to this trend, with a remarkable 20% growth in leasing such spaces compared to the previous quarter.
Land Efficiency and Zoning Regulations
In addition to cost efficiency, limited land availability, and growing demand, updated zoning regulations have also played a pivotal role in encouraging vertical development. Orlando’s zoning changes align with the city’s vision for more urban-forward growth and development.
Aesthetic and Collaborative Benefits
Beyond the practical advantages, multi-story industrial buildings offer aesthetic and collaborative benefits. They provide businesses with the opportunity to create unique workspaces that promote synergy and innovation. While retrofitting existing structures for multi-story use can be challenging, purpose-built designs can offer even more elaborate and functional mezzanines or second floors.
Environmental Sustainability
From an environmental standpoint, the trend towards multi-story industrial buildings is environmentally friendly. These structures help minimize the use of land and resources while preserving more natural spaces—a win-win for businesses and the environment.
Join the Conversation
As Orlando embraces the concept of multi-story industrial buildings, it’s worth considering whether this trend is taking root in other parts of the country. Are you seeing similar developments in your region? Share your thoughts and observations, and let’s explore how this innovative approach to industrial real estate is reshaping the way we do business and interact with our urban environments.