The design team was led by Maribel Barba, a project architect and manager who has worked in the Seattle office for a decade and had previously worked on the design of several Costco locations in Washington. “When designing this project we were definitely thinking of it as first and foremost a park and not a commercial center or space.”
The Home Depot, the largest home improvement retailer in the United States, recognized the need for an innovative, efficient, and sustainable approach to their store rollouts nationwide after a decade of construction dormancy. The company sought a partnership with a firm that would not only elevate the customer experience in their stores but design and manage a rollout program tailored to save the brand money and time as it continued to grow.
It faced the challenge of overhauling and transforming its development program to build new stores quickly and efficiently while also easing the burden on its administration staff.
Together in its new strategic partnership with MG2, which provides the brand expertise in cost management, entitlements, and full-scale program design and delivery services, the companies aimed to reduce The Home Depot’s new build construction schedule by 30%, as well as achieve a number of other goals including determining the right construction methods, implementing sustainable solutions, and appealing to communities and jurisdictions alike.
To determine the most suitable construction method and location for The Home Depot’s new stores, MG2 conducted a series of data-driven site analyses comparing pre-engineered metal buildings (PEMBs) against concrete tilt-ups. These analyses, which took into account and outlined each option’s proven advantages and potential volatilities, revealed significant benefits in choosing Houston, TX, as its new location and supported the brand’s decision to invest in a PEMB for its warehouse.
With a data-driven road map established, designers at MG2 began by creating and validating an in-depth prototype. Through this process, the team confirmed the potential to transform and streamline The Home Depot’s development and build process. With MG2’s holistic approach, the home improvement leader has been able to remain virtually hands-off, overseeing the projects from a high-level perspective without handling the day-to-day tasks.
As the partnership continues to grow, MG2 continuously targets efficiencies to deliver a greater return on investment for The Home Depot. Beyond cost and speed-to-market optimizations, the resulting store designs offered customers a cleaner, friendlier, and lighter interior experience. Updated wayfinding and educational initiatives further empowered The Home Depot’s clientele in their home improvement endeavors.
MG2’s data-driven site analyses played a crucial role in The Home Depot’s decision to invest in a pre-engineered metal building (PEMB) for their new Houston, Texas location and will continue to play an important part in determining the locations and construction methodologies of future stores. Despite initial higher material costs, the accelerated construction schedule of the PEMB warehouse led to overall savings of 0.7% to 3.2% for the year. In addition to its sustainability benefits—which appeal particularly to urban jurisdictions—the PEMB offers numerous advantages, including:
Leveraging combined expertise, MG2 and The Home Depot have effectively developed innovative, efficient, and cost-conscious solutions that align with the brand’s rollout objectives. The PEMB warehouse in Houston, Texas, showcases the partnership’s achievements and underscores the importance of data-driven program design in the evolution of retail spaces.
As the collaboration continues, both companies aim to further transform the home improvement retail landscape, providing enhanced value and experiences to customers across the nation.
Imagine playing soccer or shooting hoops on the outskirts of Mexico City while atop a 524,549-square-foot Costco Wholesale project. Built on a landfill, this unique retail warehouse, parking structure and loading bay is almost completely hidden from public view.
We’re excited to be included in ENR’s 2023 Top 500 Design Firms Preview.
Russell Hazzard, AIA, president of MG2, led a panel of experienced vertical industrial developers and architects at this week’s I.CON West in Long Beach, California, that explored the advantages and challenges that accompany these types of projects.
The look. The feel. The presence. Nothing stands out more in a commercial project than the
retail, restaurant, hospitality, healthcare (and other) sectors, check out our annual listing.
For decades, we’ve been passionate about supporting the development of future design leaders and fostering creative ideas that will influence the communities and spaces in which we live, play, and work. With unique perspectives and imaginative concepts, students have the potential to shape the future of the built environment and bring a breath of fresh air to the industry. That’s why we’re thrilled to announce that our Summer 2024 Internship Program is now open for applications.
MG2 has always placed distinctive value on high-impact career growth, continuous learning, and the influence those have on cultivating an exceptional company culture. Our Internship Program provides students with a hands-on experience in the field, allowing them to develop their skills and gain a comprehensive understanding of what it’s like to work in architecture and design. With four start dates to choose from, interns will have the flexibility to choose a program that works best for them and their university schedule.
Ready for real, hands-on experience? Not only will our students assist with document preparation, data collection, research, and other project tasks that ensure successful results, but they’ll also have access to dynamic social and learning events, mentorship, as well as our infamous Annual Student Intern Design Competition. Designed to give interns a comprehensive understanding of the industry, we’re excited to provide applicants with the opportunity to be a part of our dynamic and collaborative team and contribute to shaping the future of design.
We’re looking for passionate learners who are currently pursuing a Bachelor’s or Master of Architecture or a related degree and have proficiency in AutoCAD, Revit, MS Office, and Adobe Creative Suite. Applicants should also embrace and exude MG2’s core practice values of an Integrated Approach, Design Excellence, Social Responsibility, Leadership, and Results.
This year MG2 is offering internship opportunities in each of our United States offices, with focuses that span our 社区环境, 消费者体验, and 客户项目 markets. With a variety of opportunities available, students will be able to experience projects, sessions, workshops, and experiential collaboration that aligns with future career goals.
Our employees are the heart of our firm, and as part of our team for the summer, students will have access to a variety of programs and perks that aim to make their experience with us truly unforgettable. From our commitment to sustainability to our dedication to equity, diversity, and inclusion, our interns will find a supportive and inclusive community at MG2.
To keep our culture strong and bring everyone together, we host bi-weekly all-office meals, monthly recognition events, happy hours, summer activities, and an end-of-year holiday party to commemorate our successes. No accomplishment is too small to celebrate, and we’re passionate about making every moment count.
To ensure our built environments are a true reflection of the communities we serve, diversity is a fundamental ingredient in MG2’s recipe for creating not only exceptional projects but an inclusive and equitable work environment. We’re actively seeking out talented individuals from diverse backgrounds who bring a wealth of unique perspectives and ideas to the table.
Our differences make us stronger and are integral in designing and building experiences and spaces that cater to everyone. We proudly champion inclusion in all its forms and strive to elevate every voice in order to create truly equitable experiences and spaces.
In our never-ending quest to cultivate the next generation of design professionals, we’re excited to welcome students who share our values, vision, and passion to join our team this summer. Early applications are due April 5, 2024. Let’s start your journey in architecture together.
With over 20 years of experience in the design and construction industry, Roy leads teams at MG2 with unique expertise in building and maintaining prototypes and roll-out toolkits. These specializations can include everything from a baseline kit of parts approach, comprehensive construction documentation template sets, and design, to sustainability or development guidelines.
Over his decorated career, Roy has excelled in the design and delivery of a range of project types, from ultra-custom, high-end flagship programs to fleet rollouts in multiple countries. Utilizing a methodological approach, he and his team take the time to listen and deeply understand each client’s goals and requirements, presenting those objectives back graphically in a straightforward manner to ensure clarity. From there, scalable solution options are born, tailored to both the size and ambition of the rollout program and the client itself.
Roy constantly analyzes an ever-shifting market, staying abreast of current challenges, including ever-increasing costs, supply chain challenges, and increasingly ambitious sustainability requirements, all of which are central in determining 什么 gets built, in addition to designing systems for 怎么样 it gets built.
He hand-selects specialists to solve each client’s most relevant design challenges through quantifiable analysis, creating program-based tools and solutions that are accurate, efficient, and flexible over time. Through Roy’s unique approach and process, he creates spaces that embody each partner’s objectives, goals, and core values.
With over 20 years of experience in the design and construction industry, Roy leads teams at MG2 with unique expertise in building and maintaining prototypes and roll-out toolkits. These specializations can include everything from a baseline kit of parts approach, comprehensive construction documentation template sets, and design, to sustainability or development guidelines.
As he partners closely with clients to ensure successful outcomes, Geir’s passion for delivering a better product is evident in his process, which leverages strengths in organization and communication. His hallmark approach to design is characterized by leadership, respect, and hard work, and his dedication to the success of the teams with which he works inspires him daily.
When he’s not strategizing about the future of the built environment or working toward delivering exceptional results, you’ll find Geir spending time surrounded by nature and indulging in his favorite pastime of disc golf.
As with the two before it, 2022 was a year of unpredictable change, evolution, and growth for our company, industry, and planet. MG2 is thrilled to take this moment in time to celebrate the devotion, perseverance, and enthusiasm that saw us through it all with the promotion of 102 highly outstanding staff across our global offices throughout the year.
As we dive into the waters of 2023—an adventure into both boundless prospects and undiscovered possibilities—we’re humbled and honored to have such incredible talent leading the way.
Amongst our leadership, it’s a pleasure to introduce our new Chief Financial Officer—Wendy Unzelman—and welcome three new Principals—Amy Hart, Mitch Pride, and Roy Hague—as well as three new Associate Principals—Nathan Menard, Geir Mjelde, and Javier Buscaglia-Pesquera—to our ranks.
But of course, our leaders are just one patch on the diverse quilt that is MG2. It’s with absolute pleasure that we celebrate the career advancement of dozens of dedicated staff from every department, market, and level. There are no small responsibilities here; we would not be the company we are today without the extraordinary ability and tenacity of all of our colleagues. We are fortunate to have outstanding people defining and delivering a limitless future for MG2 and our customers, putting your best into all you do, and making our firm such a fantastic place to work. Congratulations to all!
For decades, MG2 has been deeply committed to fostering and growing authentic connections with the societies we live in, and design for. Proudly driven by and shaped by the dedicated employees of our firm, each philanthropic undertaking is a direct representation of the social issues, community challenges, and personal passions held as high priorities by individuals and teams throughout our practice. This personalized approach doesn’t just set us apart from others in our industry: it fundamentally defines who we are and what we stand for as a company.
2022 was truly a remarkable year for MG2. It was a year that tested our agility, perseverance, and character, with exemplary results documented not just through our projects and partnerships, but across the impact we’ve made together in—and on—our communities.
It was a year that empowered our firm to double down on commitments to institutions like Howard University, the University of Oregon, the University of Washington, Washington State University, Lake Washington Tech, and Florida A&M University—with whom we’ve established vocational scholarships to help foster career paths in design for those in underrepresented communities—and forge new relationships with organizations like Seattle-based Fred Hutch, whose strides in cancer research are transforming lives around the globe.
It was a year that finally allowed our staff to reengage in many of the physical initiatives, activities, and events that have always invigorated us to our core. From Day of Giving volunteer missions organized by teams across the globe, to group builds for BLOCK Project 和 NAIOP Community Enhancement Projects, to celebrating our 20th Swing for the Cure golf tournament in person with our partners once again—the emotion? Palpable. The energy? Visceral.
But perhaps most importantly, 2022 was a year that encouraged us to reenvision and recraft our roadmap for the future of the MG2 Foundation. Armed with deeper intention and meaning behind what we invest in (and why), we look forward to 2023 where we’ll seek to elevate the representation of the Foundation in underwriting all of our community engagements, investments, and initiatives, resulting in even greater impact than ever before.
This is where you, our community, come in. MG2 Foundation initiatives represent an investment not only in what our company stands for but also in our core identity.
To truly succeed, we need employees at all levels to bring their passions, energy, and ideas to the forefront. We need managers and leaders to help us educate teams about MG2’s impact efforts and to set a positive example by engaging with those with whom you resonate the most. And we need our friends, family, and partners to continue to bring their passions and support to the table. We would not succeed without you.
But most of all, we need everyone to lean in and take advantage of the virtually limitless opportunities at hand. With each new year, it’s our honor and pleasure to grant each of our employees the chance to support the organizations and causes they’re passionate about. To make a genuine difference in our communities, industry, and future. All you have to do is rise to the challenge.
Here’s to taking our impact even further together, in 2023 and beyond.
Yours in service and gratitude, Mitch Smith, CEO, MG2
Learn more about the mark MG2 has made on our communities in our inaugural MG2 Community Impact Report, or by reaching out to our team.
The Costco is topped by a colossal, high-performance green roof that supports urban biodiversity. A pedestrian bridge links the big box store’s rooftop recreation zone with the nearby Parque La Mexicana.
“Like any of the other 800 Costco big-box stores around the world, the new Costco in the Santa Fe district of Mexico City is gigantic. Its warehouse-like shopping area and three-story parking structure add up to more than 524,000 square feet of real estate,” reports Nate Berg of Fast Company,
“But looking at it from the outside, it’s almost hard to see that a megastore behemoth is even there at all. Unlike most of those other Costcos in the world, this one has been designed to conceal itself underneath a massive public park.”
“’The intent for this building was to be hidden and merge with the natural landscape,’ says Maribel Barba, a project manager for the global architecture and design firm MG2, which designed the store.”
With a multi-faceted background in residential, aviation, interiors, justice, and retail, Javier Buscaglia-Pesquera is a leader with diverse experience helping to grow and manage our Client Programs studio in Washington DC.
With over a decade at his back, his expertise spans everything from project delivery to financial, account, project, and client management, where he leverages an empathetic approach toward problem-solving and ensuring each stakeholder sees their goals recognized and voices heard.
Putting structure and transparency at the forefront of every partnership and project, Javier understands that the key to any successful venture is born from strong, collaborative relationships. Each day, he feels inspired by the variety in his work, and rewarded in seeing the creativity expressed by his team come to life in the built environment.
When he’s not exploring new opportunities in unpursued markets or tackling everything from entitlements through construction, you’ll find Javier gardening, baking, or skimming architecture publications to get a glimpse of what’s next in design.
Parque La Mexicana is a 70-acre urban green space centrally located in the Santa Fe neighborhood of Mexico City. The area is home to over 5,000 trees, two lakes, a skatepark, an amphitheater, playgrounds, a dog park, bike paths, a running track, restaurants, and so much more. This award-winning, one-of-a-kind park is designed to be financially self-sufficient, strategically partnering with retailers as an integral part of its business plan.
When Costco Wholesale, which sought to take up residence in the Santa Fe district, became one of those retail partners, the company collaborated closely with MG2, the community, city, and the park itself to ensure the aesthetic and functional unity of Costco’s built environments into the existing landscapes, resources, and sustainable operations. In addition to hurdles presented by the site’s environment, teams faced the incredible challenge of virtually hiding the entirety of Costco’s massive warehouse, parking structure, and loading bays from public view.
The resulting structures are, arguably, one of the most sustainable, beautifully designed Costco Wholesale developments in the world.
Constructed on a former landfill site, Costco Santa Fe’s location also resides in a high-seismic area in Mexico City, creating soil variables and structure risks. In order to mitigate both challenges, designers implemented the use of piles and a pre-engineered metal building, which simultaneously reduced overall cost and contributed to its LEED-ready design.
To achieve this feat, designers worked to physically and operationally integrate Costco’s structures with the surrounding park, further going above and beyond by matching—or exceeding—the park and the city’s sustainability standards.
With just one side of the building fully exposed to the public, the remaining three are strategically hidden from view, blended into the existing landscape. “Montanitas”, or tall berms covered in native plants, trees, and grasses work double duty to camouflage the warehouse exteriors while minimizing the irrigation and water usage required to allow them to flourish. Green facade screens with native crawling vegetation planted at its base as well as cascading down from the roof above will grow over time to further obscure the warehouse and parking structure’s appearance.
The warehouse’s 144,522 sq/ft metal deck high-performance green roof—three times bigger than any other landscaped space for a Costco in Mexico—was meticulously curated with thousands of native plants and grasses spanning 10 varieties, each reviewed and approved by local environmental agencies. In partnership with Secretaria de Medio Ambiente, insect “hotels” have also been installed, further nurturing nearby flora.
The roof was custom engineered to collect and transport stormwater runoff to the park for landscape amenities such as fountains and ponds. Unique waterproofing and leak-detection systems were also developed to ensure the facility’s rainwater accumulation and operations function correctly and prevent water from seeping through the membrane.
Due to the roof’s green-centric design, the installation of standard HVAC systems required customization. Just one block of machinery lives atop the building, while additional mechanics, including air handling units designed to chill the warehouse with cold water, reside underneath.
Atop the parking structure: a veritable playground for city residents and visitors, purposely designed with sustainability, wellness, and community in mind, and seamlessly blended into the existing Parque Mexicana beyond. Carefully configured, a fútbol field, padel court, and hybrid basketball/volleyball courts sweep across the roof, while a pedestrian bridge extends the existing jogging path, looping it back into the park.
Adjacently overhead Costco’s receiving area lies a beginner’s roller skate park, designed for children, to get the hang of basics before graduating to more advanced terrain.
The one-of-a-kind design, solidifying the concealment of the Costco warehouse, parking structure, and loading bays, unifies the amenities’ connections to the established park experience while offering a new array of spaces for the community and visitors alike to enjoy.
“Seattle-based architecture and design firm MG2 has promoted Shannon Suess, Terry Odle, Mai-Lee Lam, and Mat Yeung to the role of principal.”
Over the past 15 years, multilevel warehouses — particularly those used for retail purposes — have been a growing trend across Asia, and more recently, in the United States. However, some challenges accompany their design and construction that are not encountered in the traditional approach to large-format retail. With operational criteria at the top of the list, these challenges vary heavily based on several factors, including location, footprint, environment, jurisdictional requirements, and even cultural and community influences.
It’s no secret that with each passing year, cities in the United States become more and more populated. By July 1st, 2022, usapopulation.org estimates that New York City will reach 8.865 million residents. With this rise in density comes numerous development challenges. Among them: abundant, accessible multi-family housing for individuals and families, and last-mile distribution solutions for companies servicing urban neighborhoods and their surrounding areas.
When it comes to the development of both multi-family housing 和 commercial properties like warehouses or distribution centers, particularly in metropolitan environments, each presents its own series of challenges and hurdles. Most prevalently, however, is space. As cities continue to grow, the harder it’s becoming for developers to find real estate for either venture, and the more expensive it’s becoming to bring these theoretically single-use structures to life.
But what if, in cities like New York, we could solve both challenges at once? What if we could optimize footprints vertically to—proverbially—kill two birds with one stone? Is it feasible to design and build a solution that houses both residential tenants 和 the complex operations of a last-mile distribution center, one that allows them to co-exist in the same building in harmony, without the two worlds interfering with or disturbing one another?
Overseas, these concepts are already becoming a reality. Well-versed in the intricacies of both markets, designers in MG2’s Shanghai office have been working on hybrid-use, single footprint solutions in Korea’s rapidly growing cities for years. From Gocheok, to Pyeongtaek, to Jichuk, warehouse facilities in Asia have been designed to co-exist in harmony with both residential and office towers that rise above. With these complex projects, however, comes a series of considerations that span design, operations, logistics, local government regulations, and perhaps most intricately, structural challenges.
So what do those considerations look like for us in urban sprawls like the Tri-State area, and more importantly, is it possible to overcome them and create our own single-footprint solutions for multi-family housing and last-mile distribution?
As with all good projects, acceptance and approval from all concerned parties are critical to the success of any real estate venture. For a mixed-use urban building that houses both multi-family residences and a last-mile distribution center or warehouse space, stakeholders can include city governments, jurisdictions, developers, commercial tenants, and representatives of the local community.
Pushback from neighborhood residents and city entities over concerns of traffic, noise, and potentially a loss of tax dollars are becoming more prevalent, while simultaneously viewing the potential plus of an “increase in jobs” as perhaps not the “right kind” of local jobs for their district.
Developers or commercial tenants who don’t want to have to worry about the complexities that arise from sensitivities, restrictions, or even potential violations that might occur from being in such close proximity to residential inhabitants may see these cons outweighing the pros, and want to avoid the venture altogether.
It sounds like an uphill battle to be sure, but the secret to success with this concern is a multi-faceted understanding of each stakeholder’s individual concerns, objectives, goals, and desires, as well as the design and logistics intricacies of each market. With this expertise leading the way, each piece of the puzzle is heard, understood, addressed, and solved for in the final product.
While human-centered conversations with those involved in and affected by this unique type of development are a necessary first step, investments in sustainability can also play a role in helping sway the tides of stakeholder buy-in. With many developers today pursuing LEED certification for all of their projects, the additional integration of EV capabilities into commercial facilities, as well as other sustainable initiatives that benefit cities, companies, and communities alike, can play a huge role in shifting the viewpoints of those involved.
With two building systems living on the same footprint, there are dozens of operations and logistics factors that need to be taken into account for both, particularly in an urban environment. Last-mile distribution facilities can often operate around the clock, and the noise that stems from the warehouse itself, as well as the receiving bays of a 24-hour operation, has the potential to be a major disruptor to the lives of those above.
Harmonization of the vertical transportation and traffic flow of delivery trucks and facility employees with residents’ vehicles in what might be a complex, multi-tiered parking system is paramount. Additional considerations for both warehouse staff and residential tenants include safety, security, privacy, lobby areas, access to street frontage, and more.
For these two ventures to co-exist and operate in harmony within the same building, intimate expertise is required in not only the daily logistics and flow of commercial facilities and multi-family housing, but also in the built asset management required for the optimization of operational upkeep for each typology, and where these two programs will differ and overlap.
Furthering the operational hurdles that accompany this new mixed-use typology are, of course, the configuration challenges behind designing and constructing two different building systems into one structure.
In addition to considerations like the optimization of the transfer slab for the grids of commercial, parking, and residential, the mix of uses and separations as well as strict regulations from the city for each typology need to be clarified and implemented. For example, the ordinances for elements such as emergency evacuation routes, fire separations, and sprinkler systems for multi-family housing differ from those in commercial facilities, but with each of these typologies living on the same footprint, mandates for both need to be factored in the structure’s design.
While tackling mixed-use projects like these in Korea, designers have noted that, with residential above, the column spacing and layout of the last-mile delivery warehouse floor are affected. This, in turn, affects components such as the size and shape of these columns, the location and height of industrial steel racks, and the space required for forklift and personnel maneuverability and traffic optimization.
As urban areas become denser, demand for housing and last-mile delivery solutions will continue to rise. These examples are just a handful of the dozens if not hundreds of challenges that require experienced consideration to design and build successful mixed-use solutions that house both multi-family residential 和 commercial last-mile warehousing facilities within the same footprint.
By employing cross-market expertise and designing solutions for both typologies in tandem, developers have the opportunity to bring to life these new, highly desirable mixed-use building types in urban settings. Making this concept a reality in a metropolis like 纽约 or its surrounding areas is not only possible, but practical for the future of companies, cities, and urban communities alike.
After almost two decades of partnering with contractors, cities, and clients on delivery and construction, Amy Hart’s favorite chapter of each project is still seeing what started as a drawing on paper transform into a life-sized reality that she can see, touch, and experience.
As a leader for MG2’s Client Programs teams, Amy understands and truly values the importance of relationships. From working with her long-standing clients, to mentoring younger staff, to connecting with and getting to know the intricacies of jurisdictions during permitting, she prioritizes human-centered communication above all else, knowing first-hand how it leads to exceptional results.
Amy is a results-oriented designer who is continually refining her approach and searching for efficiencies across design process, budget, and delivery. These methodologies, combined with detailed organization and equitable stakeholder mitigation allow her teams to become more streamlined and effective with each project.
With over 20 years of experience in the design and construction industry, Roy leads teams at MG2 with unique expertise in building and maintaining prototypes and roll-out toolkits. These specializations can include everything from a baseline kit of parts approach, comprehensive construction documentation template sets, and design, to sustainability or development guidelines.
Over the past 18 years living in Shanghai, Ta-Ren has partnered with clients, governments, and design teams, coordinating every aspect of design services on projects and programs of varying scales. He specializes in entitlement and schematic design, using his expertise in morphological architecture to translate ideas into reality.
Through an artful harmonization of systematic processes, idea generation, and candid communication he guides his teams to approach every program detail with extensive consideration, allowing them to bring exemplary designs to life.
Seattle-based architecture and design firm MG2 promoted Shannon Suess, Terry Odle and Mai-Lee Lam to the roles of principal. Suess is an interior and hospitality designer in the Seattle office, Odle is an architect and designer in the firm’s Irvine, Calif., office and Lam is an architect and designer in the Seattle office.
Driven by consumer trends and amplified by the pandemic, the need for industrial warehousing and e-commerce distribution centers is skyrocketing. While demand continues to heat up, however, the industry is facing numerous challenges that many developers and brands are unprepared or unsure how to navigate.
Designing and developing in industrial for decades with numerous long-term partners, MG2 has paid close attention to the shifts in market trends and the challenges they’re unearthing. This year at ICON West, members of our team had the pleasure of meeting and hearing from some of the industry’s brightest minds, understanding the hurdles industrial as a whole is facing today, and analyzing how we can anticipate and help our clients continue to navigate them as we have for decades. Here are our top three takeaways:
Over the past few years, spikes in material costs and supply chain issues, coupled with labor shortages have increased the cost of construction in all market sectors, industrial included. These major shifts, in addition to driving up prices, have also had an impact on completion schedules, drawing out completion deadlines well past their intended dates.
With these challenges not dissipating any time soon, companies are searching for ways to keep their products in the mainland United States, relying less on offshore storage of goods. The exhaustive quest for “future-proofing” from the industry’s current situation is not unwarranted: In December 2021, 49% of the containers in the Port of Long Beach simply sat there.
But as they say, “crisis brings opportunity”, and with the huge need and demand for industrial warehousing and e-commerce distribution centers to be on U.S. soil, an opportunity is exactly what the industry is experiencing. Once a “warm” market with inexpensive and average length leases, competition has surged with industrial real estate becoming hotter than multifamily houses in some areas of the country. Today, the race to find available land to build on is faster than ever. With costs increasing and longer leases locking down availability, developers have an urgency to act fast or risk losing sites. A lack of movement or even hesitation for too long can cost companies in the long run.
While industrial real estate and the supply chain for materials to bring warehouses together continue to pose challenges for developers, they’re only half the battle in the war for getting consumers their goods. The future of last-mile delivery is being fueled—or charged—by electric vehicles and trucks. However, in order for these EVs to truly gain traction, drivers need access to lightning-fast charging stations as conveniently as they’re able to access gas stations across the country. Today, these charging stations are expensive to install and can take a toll on cities’ grids, particularly in more rural areas.
The main crux of electric vehicle adoption in our supply chain is a collaboration between utility departments, jurisdictions, governments, EV manufacturers, and charging station companies. The good news is, solutions are already underway. Hundreds if not thousands of rapid charging stations—ones where vehicles can charge in 15 minutes as opposed to an hour—are already in progress being built across the country. With this more robust infrastructure, we could see game-changing advancements in industrial operations in just a few short years.
The final piece of the puzzle to helping unlock the future of industrial lies not in the hands of governments, companies, or developers, but in the hands of the communities where industrial real estate is looking to set up shop. Pushback from local neighborhoods over concerns of traffic, noise, and potentially a loss of tax dollars are becoming more prevalent, while simultaneously viewing this “increase in jobs” as perhaps not the “right kind” of local jobs for their community.
Human-centered conversations and truly understanding the concerns of those opposed to industrial development are a necessary first step, but sustainability also plays a role in improving our discussions with communities. While most developers these days are pursuing LEED certification for all of their projects, the integration of EV capabilities into facilities and other sustainable initiatives that benefit both company and community can shift the viewpoints of local stakeholders.
With decades of industrial architecture and development at our backs, our teams have worked diligently to help our clients navigate the ever-shifting tides and complexities that come with bringing industrial warehousing and e-commerce distribution centers to life. While we can’t be certain what the future holds, we know we’ll be ready for whatever comes next.
As one of the first 20 employees to join MG2, Smith quickly rose from project manager to CEO and chairman of the board by honing the craft of architecture. He perfectly balances delivery excellence with a design mindset, driving kinetic transformation long into the future.
“You can’t wait for a specific opportunity to arise to develop your staff,” Smith says. “You have to continually invest in and provide opportunities.”
Perpetually guided by our vision to create transformative experiences that elevate everyday life, MG2 celebrated its fifty-year anniversary of delivering award-winning architecture and design projects across the globe.
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