Top 3 Trends in Manufacturing Real Estate – Design and Build
Posted by [email protected] on Aug. 18, 2026 / Subscribe 0
We connected with Jordan Jenkins at GHMA member company ARCO Design/Build for a facility update.
#1: Power Availability & Capacity
Manufacturing tenants require significantly higher power draw than typical warehouse occupants due to heavy machinery and equipment loads.
“On speculative warehouses, the developer's not necessarily going to install the biggest transformer, because they don't necessarily know who the tenant's going to be. But with manufacturers, the tenets often have heavy machinery, with heavy loads. A common solution is adding or upgrading existing transformers to support 3,000–6,000 amps. Gas utilities and water supply are also frequently upgraded alongside electrical infrastructure.”
#2: Speed to Market
Many manufacturers can’t afford the time required for ground-up construction, making existing warehouse spaces highly attractive.
“A lot of manufacturers don't necessarily have time to do full ground-up building, so they look for existing warehouse space that enables a quick six to eight-month turnaround to build out their space in order to get production moving. They have orders or contracts already in place, and the faster they can get into the building to start creating the product, the faster they execute their contract and begin making money. We’re seeing this in the data center boom where suppliers are under intense pressure to fulfill orders ahead of competitors.”
Trend 3: Vertical Integration / Bringing Capabilities In-House
Driven by tariff pressures and supply chain vulnerabilities, manufacturers are increasingly investing in end-to-end in-house production capabilities.
“We see a lot of manufacturers wanting to make all their material in-house so that they don't have any supply chain issues that will affect contracts and impact their ability to start producing. For example, we see them investing in sheet metal cutting, or powder coating, so they can manage the entire process internally, without being constrained by third-party suppliers. The goal is to maintain control over production timelines and protect contract fulfillment.”
Macro Trend: Data Center Boom as a Demand Driver
“I would say the data center world is really providing a big lift — especially the downstream suppliers in the data center world — like cooling solution manufacturers, racking component producers, and smaller parts and infrastructure suppliers. The rapid growth of data centers is creating a downstream surge in manufacturing demand.”
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