It’s no secret that warehouses may produce excess noise, generate vehicle traffic, and otherwise inconvenience occupants of surrounding residential areas.
However, a warehouse boom continues to grip the country as retailers seek to meet ever-growing demands for e-commerce fulfillment.
In the face of excessive demand, developers and other industrial real estate stakeholders have been forced to seek properties outside traditional industrial areas.
As warehouses spring up nearer to residential properties, those residents have begun to push back with a battle cry that’s hardly new to commercial real estate professionals: “Not in my backyard!” Not in my backyard (NIMBY) movements are an age-old challenge faced by commercial real estate stakeholders ranging from retailers to office buildings to manufacturers.
Unfortunately for warehouse developers - who are desperate to deliver new inventory - NIMBY pushback has created an additional challenge for siting new facilities in an already-complex market.
Reasons for NIMBY efforts vary widely between residents, making it difficult to make concessions that will please everyone. Common fears associated with NIMBY appeals include:
Given that NIMBY objections typically get filed with town or city officials in advance of construction, developers have the opportunity to address many of these concerns before breaking ground. Doing this may help to alleviate the concerns of the local populace and even gain support from some residents.
Some real estate developers will refer to NIMBY movements as “Citizens Against Virtually Everything” (CAVE) and refer to the opposition as CAVE people. It’s worth noting upfront that these attitudes aren’t helpful and may result in additional derision your organization must overcome. NIMBY movements generally rise out of concern for the community, making it important for warehouse stakeholders to treat those concerns as valid.
Consider some or all of the following practices to help you minimize pushback from the local population:
The items listed here only represent some of the available options for winning over a NIMBY movement. As a best practice, hold public forums to ensure you hear your potential neighbors’ concerns as soon as possible. Once you understand their fears, you will find it easier to address them with your design and operation.
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Founded by Frank P. Crivello in 1994, Phoenix Investors and its affiliates (collectively “Phoenix”) are a leader in the acquisition, development, renovation, and repositioning of industrial facilities throughout the United States. Utilizing a disciplined investment approach and successful partnerships with institutional capital sources, corporations, and public stakeholders, Phoenix has developed a proven track record of generating superior risk-adjusted returns, while providing cost-efficient lease rates for its growing portfolio of national tenants. Its efforts inspire and drive the transformation and reinvigoration of the economic engines in the communities it serves. Phoenix continues to be defined by thoughtful relationships, sophisticated investment tools, cost-efficient solutions, and a reputation for success.
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