Everyone knows the game. Rock beats scissors, Paper covers rock. But in the real world wouldn’t you rather have a rock than a piece of paper? Well in the real world a piece of paper called a mortgage can take your “rock” of a house, so maybe there is some wisdom in the old game. The point of the story is that things that seem to be better and stronger are not always as they appear at first glance. A pre-engineered steel building is lighter and more flexible than a hard-walled tilt-up concrete building, but which one is better?
The Hollingsworth Companies have been building and investing in industrial buildings for 30 years and we still own the first industrial building we built. So, we have lived the life-cycle of an industrial building many times over. The first industrial building we built was a pre-engineered steel building with masonry at the bottom 8 feet for better impact resistance and we have been building them that way ever since. We frequently get customers asking us, “will you build us a tilt-up concrete building?” The perception is that a tilt-up concrete building is a superior, stronger, longer lasting building. We have often priced the tilt-up concrete alternative and it varies a little, based on the cost of concrete in a particular location, but the premium for the original construction cost runs from 15%-18%. And that is just on the initial cost. The maintenance for tilt-up concrete is much higher. A tilt-up concrete building is a painted structure. A painted structure that is 40 feet tall. It is an expensive proposition to repaint the entire exterior of a tilt-up building. Repainting is actually much more expensive than the original painting because of the additional preparation work required. For a 100,000 SF building the cost to repaint every 5-7 years will be close to $50,000. A pre-engineered steel building has factory painted siding that lasts 25 years without the need for painting. Pre-engineered steel buildings are also easier to insulate to whatever level you desire, potentially saving thousands of dollars every year, for the life of the building.
But even more important over the life of an industrial building is flexibility. Tenants and processes tend to change over the life of an industrial building. Adding an intake or exhaust louver in steel siding is a very simple process and so it is easy to adapt the steel building to the changing needs of the tenant. Tilt-up concrete is a very different proposition. New openings in tilt-up panels are limited by the size and reinforcing pattern of the concrete. Additional steel framing is usually required to stabilize the cut panels. And if 5 or 10 years down the road, the opening in the panel is no longer needed, it is virtually impossible to invisibly patch the opening. With steel buildings, a new piece of siding factory painted the same as the original is readily available to restore the building to like-new condition.
The bottom line is pre-engineered buildings cost less up front, cost less to maintain and are more flexible over their useful life. That is why we stick with pre-engineered steel for our long term industrial real estate investments.
The Hollingsworth Companies invest millions of dollars in getting prepared to meet the high-speed demands of our industrial clients. We have researched ideal geographies with great interstate highway access and bought hundreds of acres of land, installed infrastructure, designed and permitted buildings and even pre-graded the sites to bring them to a “foundation-ready” state. We also have a commitment from A&S Building systems to deliver our quick-ship stock size industrial buildings in just six weeks-months faster than anyone else.
Once a project is approved, with a pre-graded site, the very first thing to do is install foundations. Normally that would require steel re-bar shop drawings, review and approval, then fabrication, delivery and tying before foundations can actually start going in the ground. The re-bar procurement can take 3 weeks in the best circumstances, but in today’s heated construction market, that wait can stretch to 6 or even 8 weeks.
With all our investment in speed, we had to find a way to be able to start construction as soon as the client is ready to move forward. This is when we discovered Helix Steel twisted wire micro reinforcing admixture. This in-stock off the shelf product is added to the concrete at the jobsite in proper dosages to totally replace the structural rebar. This totally eliminates the rebar procurement and rebar tying timeframes saving a month or more in critical timeline projects. It also totally removes the problems of misplaced or displaced reinforcing during concrete placement. This is a common problem in concrete construction that is well recognized and totally solved with this innovative new product. This product would be worth a premium for the time savings alone, but it also reduces field labor significantly. In reality, the product is not more expensive than traditional rebar on a price per pound basis.
Any product that saves time and money while at the same time improving quality is a hands-down winner. This innovation has now enabled the Hollingsworth Companies to be more productive and to deliver customized Build-to-Suit industrial facilities faster than ever. When your company is ready to grow, Hollingsworth is ready to go with Foundation-Ready sites that can be customized to your exact needs. Contact our in-house industrial architect, Tom Wortham, at 865-457-3701, to discuss your industrial Build-to-Suit needs today.
When The Hollingsworth Companies built the SouthPoint Business Park Huntsville, Alabama in 1999, little did they know that BOCAR would locate across the street; and, this would be the closest industrial park to a future Toyota Mazda plant. In November 2017, BOCAR announced a new plant on Bibb Garrett Road. In January, Toyota Mazda announced they will invest $1.6 billion to build a 300,000 SF vehicle assembly plant near Huntsville in Limestone County, Alabama.
Tommy Battle, the current mayor of Huntsville, was a key player on the team to land the Toyota Mazda project. He has provided strong leadership for job creation and the rapid growth of the Huntsville metro area. “We have a great deal to celebrate. In the past five years, our team has created 15,000 new jobs and over $2 billion in capital investment and we are not done yet,” stated Battle. On April 27, 2017, Battle announced that he would run in the 2018 gubernatorial election in the state of Alabama, running as a Republican. Battle is quoted as saying, “We’re not just in a battle for Alabama’s values. We’re in a battle for Alabama’s future. I’m running for governor, because I’m ready to lead that fight.” If elected, Battle would be the first mayor elected governor in the state’s history.
SouthPoint Business Park, just one highway ramp away from the new plant, is in good company with a recently opened Polaris plant, a recent GE aviation facility, and a Target distribution center. The SouthPoint Business Park at 40% of its capacity includes distribution companies, automotive suppliers, and defense contractors. With the improved economy and the announcement from Toyota Mazda, it is anticipated that the remaining lots in the park will fill up very quickly. The current plans for the park include the construction of 7 facilities from 108,960 SF to 327,600 SF on lots sized from 11.12 acres to 26.42 acres.
The new Toyota Mazda automotive site, off Powell Road and Greenbrier Road, was passed over by Volkswagen in 2008 in favor of Chattanooga. Since then, it has been certified as a TVA Mega site and an Advantage Alabama site by the Economic Development Partnership of Alabama.
It also didn’t hurt that Toyota Motor Corp. President Akio Toyoda already had warm, nostalgic feelings about Alabama. While making the plant announcement last week here in the state capital, he recalled that he stayed in Alabama as a Boy Scout on his first extended trip away from home.
The partners worked out the plan for the new plant — from proposal to completed deal — in just five months, according to Alabama officials who delivered an acceptable factory location in that short time. “Very seldom can a project of this size be put together as fast as this one,” said Tommy Battle, Huntsville’s mayor, who helped put it together.
The SouthPoint Business Park Huntsville, Alabama is located adjacent to both the I-65 and 1-565. This location provides excellent access to markets from Nashville, TN and Louisville, KY to the north and Birmingham and Montgomery, AL to the south. This corridor is highly favored by companies that serve the southern automotive market. The Huntsville area is also well suited for companies that support the Army Procurement Command, Redstone Arsenal, and NASA’s Marshall Space Flight Center.
7,000 every year…remember that number! If you are one of the many companies looking to expand or relocate and you cannot align all of the industry factor stars, most importantly the labor pool star, then Fayetteville could be your Universe. Why does Fayetteville currently have the highest “Metro” unemployment rate in North Carolina (of 5.1%), with Raleigh at 3.6% (11/17) and Charlotte at 3.5% (11/17)? It’s certainly not because the labor pool is underqualified or uneducated; it’s because 7,000, yes 7,000 “proven” US Military service members are exiting the military in Fayetteville every year and returning to the workforce. As an employer, who wouldn’t want a highly disciplined, highly trained, drug-free former service member on their team? Though a portion of this invaluable and formerly untapped labor pool is returning to their hometowns, many of these dedicated young men and women are being retained in the local economy as detailed in the July 17, 2017 article ‘Fort Bragg to Open New Career Resource Center on Post’ from the Fayetteville Observer . This program has been in place since 2016 to transition soldiers into the local workforce, while partnering with companies and organizations. So, while this extremely important component of the US economy called “labor” is becoming scarcer by the month, Fayetteville, North Carolina’s sixth largest city (of 550,000 CSA) and the state’s youngest Metro average age of 29.2 years should not just be shortlisted…it should be strongly considered.
“Between the 7,000 soldiers completing service at Ft Bragg each year, their trailing spouses, and our local residents, Fayetteville offers a talented, diverse, and young workforce. Our existing employers experience lower than average turnover rates, as well as lower labor costs and a larger available talent pool than any metro we’ve compared ourselves to in the Southeastern US.” Robert Van Geons / President & CEO/ Fayetteville Cumberland Economic Development Corporation
After almost 10 years of a down market, there looks to be a light at the end of the industrial real estate tunnel. Since the beginning of the year, the market is once again picking up momentum. To meet this demand, The Hollingsworth Companies are adding 4 Complete Speculative Buildings throughout the Southeast.
David Jones Industrial Park in Andersonville TN received the first spec building at 114,000 SF of available space. The facility is located 20 minutes north of Knoxville along I-75. This area includes a range of automotive, distribution, and home building supply companies.
SouthPoint Business Park Alabama will receive a 252,000 SF and a 108,960 SF facility. The new buildings will be completed in November and December 2017 respectively. The SouthPoint Park, Alabama is located at the intersection of the I-65 and 1-565. This location provides excellent access to markets from Nashville TN to Birmingham AL. This corridor is highly favored by companies that serve the Southern Automotive market. This park is also well located to the Army Procurement Command, Redstone Arsenal and NASA’s Marshall Space Flight Center.
SouthPoint Business Park, Mocksville, NC is in the process of adding 4 additional lots that will range in size from 13 to 32 acres. A 108,960 SF facility will be completed on the first lot in February 2018. The SouthPoint Business Park, North Carolina is located just miles from I-40 and 25 miles from the I-85/I-40 junction giving it close access to all markets along the eastern states. Mocksville is centrally located in North Carolina which is 25 miles from Winston-Salem, 60 miles to Charlotte, and 125 miles from Raleigh NC.
The Hollingsworth Companies Southern Advantage Facilities are built to provide maximum flexibility for any prospective tenant. The buildings include 32’ clear height, 60 x 60 column spacing, ESFR fire suppression system, and LED lighting systems. Office space can be individually configured to a prospect’s final specification in 60-90 days to allow for an expedited move in date.
To learn more about these properties, contact Tom Mann at 865-457-3701 or firstname.lastname@example.org.
The Hollingsworth Companies has started the Phase III expansion to the SouthPoint Business Park in Mocksville, North Carolina. With this expansion, the SouthPoint Business Park will become one of the largest semi-rural industrial parks in the state. The Hollingsworth Companies have seen the central location, support from state and local economic development agencies, and favorable business taxes in the state as key to the long term success of SouthPoint Business Park, North Carolina. But the catalyst that kicked off this aggressive expansion was the State of North Carolina’s regulatory reforms that relieved the crippling cost burdens of the 2012 IECC. The regulatory reforms reduced the costs of industrial buildings by as much as 8% which has opened the door once again for developers like the Hollingsworth Companies to proactively invest in speculative industrial space.
In support of future industrial growth, under the leadership of Terry Bralley, President of the Davie Economic Development Commission, the Town of Mocksville and the State of North Carolina approved a grant to extend Quality Drive into new acreage. The road extension, coupled with the purchase of additional acreage by The Hollingsworth Companies created the catalyst for this expansion.
A total of 85 acres of land are being developed into 4 building sites totaling 641,000SF of industrial space. The buildings will range in size from 108,960SF; 134,960SF; 152,241SF; and 252,834SF. All these facilities are designed with the ability for future expansion. The largest building, 252,000SF, can be expanded to 454,000 SF. Building construction features include LED lighting, 32 foot minimum clear height, 60 feet by 60 feet column spacing, and ESFR fire suppression system for the ideal combination of flexibility and value.
Since its inception, The Hollingsworth Companies have developed 4 business parks. The first was located in Clinton, Tennessee. The remaining three parks are located in Mocksville, North Carolina; Prince George County, Virginia; and Tanner, Alabama. SouthPoint industrial park in Mocksville is located 2 miles from I-40 and was founded in 1997. Phase I of the Mocksville park was the development of 45 acres and 4 buildings were constructed on this site for a total of 325,860 SF. Phase II included the development of an additional 57 acres of land, and 4 more buildings totaling another 421,126SF of industrial space.
With the increased optimism of the U.S. economy over the last 90 days and threat of inbound customs tariffs, the inventory of Available Industrial buildings has continued to decrease. This reduction in inventory will result in a corresponding expansion of Build to Suit (BTS) industrial facilities to support the growing market. The Hollingsworth Companies is uniquely suited to provide fast, flexible, industrial facilities in semi-rural locations for tenants that are interested in leased properties. These semi-custom BTS facilities can be located in a SouthPoint Business Park or in a location strategically selected by the tenant.
The Hollingsworth Companies continue to perfect the development, construction, and lease of masonry and steel buildings from 87,000 to 500,000 SF. In 2016, the company continued to build its development portfolio with construction techniques developed over 35 years of BTS service. One such BTS project was a 192,000 sq. expansion for an existing tenant in the SouthPoint Business Park, Prince George, VA. This Build to Suit required special attention as the expansion needed to be carefully timed to prevent interrupting the clients continuing production process. The connection of the expansion to the original facility was timed to coincide with a yearly, one week maintenance shut down. The expansion was completed on time and on budget and achieved goal of transitioning during the maintenance period.
Key benefits of The Hollingsworth Companies Build-to-Suit
General Building Features include:
To find out more about The Hollingsworth Companies Build to Suit/Lease to Suit program, contact Tom Mann at email@example.com or Tom Wortham at firstname.lastname@example.org.
A TIF program uses increased, future real estate tax revenues to fund new improvements designed to attract additional industrial investment and job creation.
The recession of 2008 paired with increased energy code requirements (IECC Regulations) and tightening environmental regulations created a perfect storm hitting industrial development. Typically, industrial developers build “speculative” buildings in anticipation of future tenant demand. These buildings are a financial risk to the developer, but a benefit to the local community as it allows for quick occupancy to potential manufacturing and distribution companies.
As the recession hit, manufacturers became cautious with expansion plans. In the same time period, the federal government increased energy and environmental regulations driving up construction costs 15%-18% and essentially erasing the potential profit for speculative builders. The market of potential manufacturing or distribution users were not willing to pay the additional costs; and, as a result, very little speculative industrial space was being built.
This widening gap for new industrial space rent versus used industrial space rent resulted in a continuing reduction in the supply of existing industrial space. Ready industrial space for manufacturing, distribution, and warehousing is a critical element needed by expanding businesses. Manufacturers need to capitalize on market opportunities in months not years; so, if ready industrial space is not available, then businesses cannot capture the opportunity and fail to grow.
To stimulate the expansion of speculative industrial space, and in turn industrial employment growth, governments can turn to incentive plans to offset rising costs. While this may seem short sighted to some from a tax standpoint, the reality is quite the opposite. Communities with immediately available industrial space have a much higher opportunity to attract new prospects, nor is it risky for the community granting the TIF. The TIF loan is paid back by the increase in property taxes and is guaranteed by the developer receiving the TIF.
The community leaders of Anderson County, TN saw the opportunity to restart speculative industrial development in their community with a TIF. Working with The Hollingsworth Companies, the Anderson County Commissioners and Industrial Development Board of Anderson County have approved a TIF for two industrial buildings and site infrastructure to be developed by The Hollingsworth Companies.
“This TIF will result in 2 speculative industrial structures of 126,000 SF each that include 13,100 SF of commercial office space”, said Bear Stephenson, Chairman of the Anderson County Industrial Board. “It is anticipated these buildings will attract automotive, plastics, nonwovens, and various other manufacturing and distribution companies and the resulting jobs to Anderson County.”
The Hollingsworth Companies’ In-house Attorney (Jamie Huskins) and SVP of Architecture and Business Development (Tom Wortham) worked with the county commissioners and industrial development board to develop the documentation and gain approval for the Tax Incentive Funding.
HDT, a current tenant at the SouthPoint Park in Alabama, has signed a lease for the 206,500 SF facility at 5951 Endeavor Way. HDT Expeditionary Systems will create more than 120 jobs when it transfers manufacturing operations from Buena Vista, Va., to the facility in Huntsville-annexed Limestone County. HDT, which recently welcomed Sean Bond as its new CEO and President, acquired the business and assets of DHS Technologies last year. Bond said the new Huntsville facility will increase production capacity, cut overhead costs and streamline related production processes into one geographic area.
“The decision to move our shelter manufacturing facility was thoughtfully made,” Bond said. “Ultimately, this transition is best for the benefit of the warfighter and the benefit of our organization. The impact will be increased competitiveness and value in our operations, and the opportunity for HDT to grow in a highly competitive global market. We expect HDT Huntsville to become the premier military production facility across all of Northern Alabama.”
Alabama Department of Commerce Secretary Greg Canfield said the state has offered AIDT recruitment and training valued at $1,042,350 and a Jobs Credit at 3 percent on the new employment payroll at a value of $1,557,130 over 10 years. HDT also will receive an estimated abatement of $30,000 for state, county and city sales and use tax to equip the project, as well as an abatement of $179,000 over 10 years for state, county and city property taxes.
The SouthPoint Business Park, Alabama has one existing building available of 108,960 SF. Eight pad ready sites are available for Build to Suit facilities ranging 87,360 FT to 530,160 SF. Construction time for these Build to Suit facilities are as quick as 150 days.
Earlier this year, British tire manufacturer Dunlop Aircraft Tyres was on a tight timetable for identifying the site of its first U.S. retreading facility. The facility would need to serve major customers such as Compass Airlines and Republic Airlines as well military clients.
These informative articles collectively provide a significant amount of information about development opportunities in the Southeastern United States – as well as unbiased reports on The Hollingsworth Companies’ approach. If you would like to have the complete set of articles in hardcopy rather than downloading them on-line, please contact us here and we will be happy to provide them to you.
Local entrepreneur Joe Hollingsworth has accomplished a lot in his varied and impressive career, but his adventuristic nature expands beyond taking risks with start-ups, stocks and investments. Between hang gliding in Rio de Janeiro, racing Formula 1™ cars and deep sea fishing off the Great Barrier Reef, it’s amazing he even has time for his next big venture —one that’s truly out of this world.
Joe Hollingsworth, Jr., CEO of Hollingsworth Companies, has been chosen as one of the nation’s top site consultants by Southern Business & Development magazine. Hollingsworth’s entrepreneurial spirit and commitment to business growth in the South have fostered exceptional growth and resulted in a dramatic impact within the economic development industry as well as his home state of Tennessee.
Hollingsworth has 41 years of successful entrepreneurial experience, which includes building single-family homes, design/build and management of multi-family homes, the growth of a thriving convenience store chain and sports club chain, as well as the revitalization of a shopping center. In 2005, his company concentrated its energies on expanding the industrial real estate side of its business. Hollingsworth Capital Partners was formed with Joe’s son, Trey, as managing partner and majority owner. The company now has business park developments in Tennessee, Alabama, Virginia and North Carolina. Hollingsworth also authored The Southern Advantage, a literary work highlighting the significant progress in the South that has laid the cornerstone for its tremendous economic destiny.
In researching for the award, SB&D extensively surveyed economic developers located in the South to identify site consultants who provide exemplary services to companies involved in a location search. The resulting list was published in SB&D’s latest issue, released earlier this month. SB&D is the leading publication promoting corporate investment and job creation in the American South, the world’s fourth largest economy.
The Hollingsworth Companies has been featured in an article in the Knoxville News Sentinel and other major Southeastern newspapers titled, “Industrial developer favors rural South”. The article discusses the market leadership position of The Hollingsworth Companies and its success garnered through partnerships with communities.
According to the latest research, The Hollingsworth Companies is now one of the largest industrial developers/investors headquartered and doing business in the region.
The Hollingsworth Companies has been featured in two editions of Expansion Management Magazine. In the 1999 Atlas and Guide issue, editor Bill King asks, “Wouldn’t it be great if you could find an industrial real estate developer who thought like a corporate site selector?” in his editorial “Proactive Industrial Development.”
Lance Yoder, managing editor of the magazine advises to “take the headache out of expansion with step-by-step assistance from the Hollingsworth Companies” in Expansion Magazine–Incentives 2000.
"I fully recommend working with The Hollingsworth Companies if cost or time driven schedules play a part in your company's opportunity because they do deliver within budget and on time with no change orders or surprises."
-- David B. Sutherland, CMS Companies
"Southern states are home to 50 million more residents than the Northeast. In corporate growth, only the South has shown a positive net migration in the early 21st Century."
-- Plano Star Courier
"We invited The Hollingsworth Companies to our Atlanta Offices. Within two weeks all negotiations were completed and the lease was executed. From beginning to end, it only took 45 days to complete our requested up fits."
-- David B. Sutherland, CMS Companies
"The bottom line is that we could not be more pleased with our Hollingsworth Companies experience."
-- Karl F. Hielscher, President and CEO, Metl Span
“From greenfield startup to becoming a national industry leader 10 years later, Hollingsworth continues to play an invaluable role in Service Center Metals growth and success.”
-- Scott Kelley, President and CEO, Service Center Metals
"Hollingsworth entered an agreement to ensure quick delivery of the pre-approved standard building sizes . We are committed to deliver the structural steel, ready for erection, in just 6 weeks from receipt of a final building order."
-- Jeff Carmean, General Manager, Nucor Building Systems
"Joe Hollingsworth participated as one of our first equity investors. In addition, Joe Hollingsworth has served as a board member and leading advisor for strategic planning and direction."
-- Scott Kelley, President and CEO, Service Center Metals