In the past 8 years, 116 obsolete business sites (at least 15,000 m2 each) have been redeveloped, resulting in the development of 4.4 million m2 (mostly) of new business real estate. As a result, 320 hectares of new business sites to be developed have not been necessary, also because the sites are used much more intensively after redevelopment (92% higher space intensity). Some 14,000 people now work in these new (largely logistics) buildings.
The consulting firm Buck Consultants International draws these conclusions from a study published today, commissioned by 15 professional real estate developers and investors and the Ministry of Economic Affairs. The real estate parties are: Borghese Logistics, DHG, Garbe, Heembouw, HVBM Vastgoed, Intospace, Logistics Capital Partners, MG Real Estate, Montea, Next Level, Panattoni, Pro-Delta, Prologis, VolkerWessels Logistics Development and WDP.
Redevelopment
Redevelopment of obsolete business sites has already gained considerable momentum in recent years, said René Buck, director of Buck Consultants International. “Since 2016, there has been a steady increase in this type of redevelopment. North Brabant, Utrecht, Limburg and the Rotterdam region are leading the way. In recent years, we are talking about 800,000 to 1 million m2 of redeveloped logistics and industrial real estate per year.”
Buck Consultants International points out that the social returns are great. These sites now employ 14,000 people, no new sites needed to be developed, the buildings are all sustainable and energy efficient, and the spatial quality of the business parks has increased. These redevelopments fully fit the policies of the state, provinces and municipalities, but they are not the solution for all space-seeking companies. “The relatively easy redevelopments have now been realized, so it now becomes more difficult and complex. Moreover, according to the central government, there is still demand for 700 hectares of industrial land annually until 2030, which will certainly also require completely new industrial sites,” the consultants warn.
Guide
At the same time as the study, a “Guideline for Redevelopment of Existing Business Locations” was presented. This Guide offers concrete tools for local authorities to get started with redevelopment in good dialogue with the market. Senior consultant Jordi Hubers: “It is a guideline and serves as guidance and support in policy-making and implementation of redevelopment. The focus of the Guideline is on larger, integral redevelopment initiatives with broader consequences for the (in)immediate surroundings and substantial sustainability opportunities.”
Problems & Solutions
Redevelopment does not happen by itself; it is a dynamic and complex process, which in practice requires the removal of persistent barriers. Think of cleaning up (heavy) soil contamination, demolishing outdated real estate, adjusting outdated planning regulations and applying for various permits for the new or revitalized building or business parcel. This requires good cooperation between the relevant municipality and the initiator.
The Guide identifies five different levels or perspectives that are important in realizing redevelopment projects: building, plot, immediate environment, organization, participation.
A total of 22 key challenges were identified and solution directions were developed for these. These include taking appropriate measures for the incorporation of commercial buildings, setting realistic requirements for sustainable and circular construction, applying measures for renewable energy and climate adaptation. Also addressed are an effective way of organization by a municipality: how to communicate well with the initiator and how best to shape participation.
The survey/guide can be downloaded HERE.
More Information:
Jordi Hubers, senior advisor
Email: jordi.hubers@bciglobal.com
M: 06 29 58 74 25
René Buck, director
Email: rene.buck@bciglobal.com
M: 06 53 37 26 12
