Author: steph olson

Three areas to understand the “right size” of your warehouse.

Warehouses are the backbone of commerce — serving as the center for storage, distribution and logistics operations. Industrial warehouses are generally between 100,000 SF to 300,000 SF, but some can be as small as 25,000 SF and others as large as up to 2M+ SF for companies like Amazon. So, how do you know the right size for your industrial warehouse? Well, it’s a complex puzzle to find the “just right” size. You must understand (and balance) your current needs with future growth, equipment and operations space with storage, parking and circulation, and the cost to build the warehouse itself.

Current Needs vs. Future Growth

Every square foot of your industrial warehouse contributes to your bottom line. And if you’re not effectively using every inch, it cuts into your profits. On the flip side, inadequate warehouse space has its own set of problems. From cluttered facilities to compromised storage and potential product damage, the consequences of not having enough or disorganized space can impact your entire operation.

“You should look at least five years into the future,” explains Lance Claussen, a senior project manager at Ronco Construction. “A warehouse design, build-out and turnover is a long process that can two to three years to complete.”

Start by asking yourself these questions: Do you constantly run out of space in your current facility? Or do you already have wasted or empty space? Do you anticipate future growth? Or is your business not seeing regular year-over-year growth?

Assessing the Space

What’s considered a well-designed warehouse? There’s no real right or wrong answer because it ultimately depends on your business. However, to create an effective and efficient warehouse, you need to think about your entire operation — inventory, distribution, equipment, storage, workflow and logistics.

Look at your current operation. Are your departments tripping over one another? Is your equipment or workflows organized in the most efficient manner? Do you have the storage capabilities to maintain the inventory you need to match demand? What if demand increases? Having a good understanding of your needs can help determine whether there are ways to better use the space you currently have or if a new space would be more cost effective in the long run.

Another consideration is location. Claussen states a warehouse closer to a major interstate or airport is beneficial, especially for deliveries and shipping. Would your operations be more efficient, save on fuel and save time if the travel time between routes was shorter. Location can also matter when it comes to ease of access to the building for trucks. Is your warehouse located where semi-trucks can easily maneuver in and out?

Construction Costs to Build

An industrial warehouse is generally a simple design — four walls with a floor and roof. In the Midwest market, the most efficient building system for warehouse construction is insulated precast concrete panels (concrete on the outside with insulation sandwiched between) for the exterior and then steel columns, joist girders and bar joists, and metal decking for the interior framing. Because warehouse projects are simple designs in nature, there’s not really a lot of value engineering for materials or innovation in construction techniques to save dollars. The cost of an industrial warehouse project aligns with the market in terms of materials and labor. With concrete as the primary material used in its construction, as concrete costs continue to rise, the cost of a warehouse also rises. And the same with labor for workers — as the minimum wage rises so does your labor costs for workers to build the warehouse.

A construction manager brought on in the concept phase of your project can bring you some serious benefits. One example is working through different cost scenarios so you build the most cost-effective warehouse that achieves your goals.

“While industrial warehouses are big box construction projects and align to what’s happening in the market, there are ways to maximize the budget,” explains Zak Olsen, president at Ronco Construction. “Evaluating certain design factors like the clear height of the structure or bay spacing, or the orientation of the joists and decking, even designing a cross-dock facility can all have an impact on the final budget.”

Other things that can impact the schedule — and ultimately the budget — are long lead items like precast panels and electrical gear as well as construction sequencing. Even having an onsite concrete batch plant can make more sense financially over trucking concrete to the project depending on the proximity to the concrete plant — once mixed concrete is in the truck, it must be poured within 60 minutes before going bad. If your project has more than 10,000 cubic yards, it could save you money in the long run.

Leveraging the knowledge and expertise of a construction manager who’s experience with industrial warehouse construction early on is an easy way to set your project up for success.   

In the quest for the “just right” warehouse, precision is paramount. By understanding your business needs and growth potential, how your business operates and the overall construction costs, you can find your Goldilocks zone.

Three key steps for successful historic preservation projects.

Breathing new life into historic buildings bridges the gap between the past and the present. These structures give neighborhoods character, reflecting the culture and craftsmanship of their time. They also help us reduce waste and conserve resources. However, it takes skilled expertise and experience to handle the delicate nature of these projects effectively. Throughout our company tenure, we’ve completed several historic renovation projects. Here are three key steps we’ve learned to ensure project success.

Collaborate Early. Collaborate Often.

As with any major project, but especially with a historic renovations, it’s a collaborative effort by all stakeholders. It’s paramount to have an established team from the very beginning. And each person must understand their roles and responsibilities as well as the project’s objectives, timeline and deliverables.

We’ve learned that engaging with a representative from your local historical organization is crucial. Keeping them informed about the project from the beginning can earn the support you need throughout the project. Another good idea is to engage a historic consultant to champion the required project documentation.

 Understanding the Scope.

Once the stakeholders and team have a thorough understanding of the historic makeup of the building and what’s required to preserve, it’s important to evaluate ways to protect historic elements without impacting the functionality of the finished space. Take existing flooring. Elements such as wood, tile or terrazzo can be historically significant to the structure, but don’t fit the intended use. So, an option is to overlay the flooring with alternate materials using a bond breaker. This preserves the historic flooring but ensures the flooring is functional for today’s needs.

Additionally, it’s important to proceed with demolition scopes as early as possible. This helps uncover any unknown or unforeseen conditions that could impact the overall scope, budget or timeline. Common instances include a floor or roof structure covered with finishes preventing an accurate analysis of damage or decay.

Specializing Where it Matters.

We’ve found it important to bring on a masonry and tuckpointing specialist early. That way they can weigh in on options, schedule and overall timeline. Since brickwork and masonry are prominent in historic buildings, it ensures we allocate the proper time and effort to the historic preservation.

Another area that’s never too early to start is windows. To maintain the historic integrity, it’s important to know the guidance on window replacement. If replacement is necessary, knowing the options and availability is helpful. Windows are large cost to a project and typically experience long lead times, so it’s critical to know as early as possible.

Restoring historic buildings is more than just construction; it’s about preserving our heritage and connecting our communities to the past. By following these key steps, we ensure each historic renovation project preserves the essence of history while adapting to modern needs.

Exploring the growing trend in the housing market.

The housing market is competitive, especially in the Omaha and Kansas City markets. Homes are selling in barely a month, with sale prices per square foot up at least 3.5% and 13.9% respectively compared to last year. When you factor in inflation and your dollars not stretching as far, it’s no wonder one in five millennials are never expected to own a home. So, what’s the alternative? An emerging trend in the housing market is the build to rent / build for rent concept.

Modern Approach to Housing

While the idea of owning and renting properties isn’t new, the build to rent model introduces a fresh perspective. The difference is as the investor, you’re building an entire community of single-family or detached homes. These homes provide renters with the same kind of amenities, communal spaces and maintenance you might get at an apartment complex. But instead of everyone in large, multi-floor buildings, the community is spread across cottages, duplexes or villas. With the rising mortgage rates and availability of homes (or lack thereof), this type of living arrangement is gaining traction.

Renters are looking for features to enhance their overall quality of life. They want a sense of togetherness that a close-knit community can provide. This happens when all the homes and renters in the neighborhood have equal access to the amenities, perks and events.

Built for the Long Term

Homeownership in today’s world is increasingly out of reach for many (and not as desired). So, build for rent communities offer a compelling alternative. These communities are for renters who are in it for the long haul — multi-year leases as opposed to annual or short-term leases. These individuals don’t want to buy and maintain a home. But, they still want to enjoy the benefits of home ownership like yards, no (or limited) shared walls, more privacy and ample parking to name a few.

As an investor, build to rent can provide faster leasing, longer tenant retention and lower overhead costs. This offers a more predictable income stream. Plus, renters are willing to pay a premium for the quality and amenities offered by these communities so it can be a smart investment opportunity. These homes are purpose-built to last and be rented for decades so they’re well designed and constructed.

Simplified Development Process

Even though build to rent communities are a collection of single-family or detached homes, it’s different than a traditional neighborhood. Instead of each house designed and built individually, they’re built as one cohesive entity. This simplifies the design, construction and management processes. Bulk purchasing of materials and standardized, streamlined construction practices can offer further cost-effectiveness. Not to mention, it can speed up the timeline from groundbreaking to occupancy.

As the demand for flexible, high-quality rental options continues to rise, it’s likely build to rent communities will become a standard in the housing market.  By combining the comforts of a private home with the convenience and amenities of rental living, it offers a win-win for renters and investors.