Light Industrial Construction: Versatile Spaces For Every Business

Light industrial is a subset of commercial construction services that focuses on the development of manufacturing, warehousing, and office facilities in the same industrial space. These “office-warehouse” mix properties best cater to companies that house their light manufacturing and headquarters operations within a single facility. This is why light industrial construction projects encapsulate the features and challenges of both industrial and commercial construction.

As modern customers’ need for faster turnaround and delivery rates continue to surge, the versatility of light industrial buildings as warehouses and distribution centers makes them extremely desirable among business owners. According to a CBRE report, the rate of the inventory of available space for light industrial properties in the US dropped nearly from 11.3% to 7.4%. The real estate firm’s 2020 industrial and logistics outlook report predicts that the demand for light industrial facilities is expected to rise as e-commerce retailers strive to offer same-day delivery to customers.

Through this blog, let’s discover the meaning and different uses of light industrial facilities, the reasons behind their growing popularity, and how commercial contractors can develop buildings that meet clients’ specific needs.

What is a Light Industrial Building?

Light industrial buildings are smaller versions of their heavy industrial counterparts, typically spanning no more than 120,000 square feet, used for the assembly, manufacturing, and storage of goods from where products directly reach consumers instead of other businesses. Most average-size light industrial units at 75,000 square feet are produced from a 300 ft by 250 ft base while the largest unit at 400 ft by 300 ft creates a footprint of only 120,000 square feet.

These low-footprint properties support light industrial work, involving small-scale manufacturing and distribution of products or parts that do not cause hazards or disturb neighboring communities by any means. It utilizes partially produced materials which results in less waste and relies more on labor than machinery. Meaning, the job of a light industrial worker may include assisting with the fabrication, assembly, packaging, shipment preparation, or quality control of consumer goods.

Some of the top examples of light industrial space types include:

• Loading docs and bays
• Warehouse and storage facilities
• Printing shops
• Commercial laundry
• Automobile repair garages
• Materials testing laboratories
• Office spaces
• Building maintenance shops
• Electronics component production
• Industrial machinery and facilities for metalwork, millwork, and cabinetry work

Light industrial facilities have primarily three types of space build-out: manufacturing, warehouse and office. Manufacturing covers 50-75% of the space whereas the remaining 25 to 50% is allocated to warehouse and office areas. Usually, these buildings provide an open floor plan that allows small business owners to modify the proportion of offices or warehouses based on their specific needs.

Thus, they are capable of serving a diverse range of commercial businesses from food production and vehicle parts assembly to textile production and retail distribution.

6 Reasons Why Light Industrial Construction Is In-Demand

Today’s fast-paced environment pushes businesses to continually adapt and expand, meeting the growing customer demands for close, accessible, and quicker manufacturing and transportation. Staying relevant with the times, business firms put more emphasis on fast deliveries than traditional warehouses and distribution centers. Instead of large consumer shipments going to physical stores for re-distribution, small-package shipments are reaching directly to consumers via suppliers like FedEx or UPS.

After researching a diverse range of business sectors and their preferences, we have listed the top 6 reasons why light industrial construction is becoming popular among investors, landlords, and tenants.

1. Blank Canvas

Similar to warehouses, a light industrial unit has an open floor plan acting as a blank canvas to the tenant. Any business type can transform the interior design of this blank canvas according to its process and workflow. Common areas like entrances and bathrooms are centrally-designed, leaving ample space to install machinery and equipment. Since the layout is not specifically meant for particular industry processes, the design flexibility of light industrial construction appeals to entrepreneurs from all sectors.

2. Rental Costs

As a matter of fact, the rental or leasing costs of light industrial properties are significantly lower than commercial spaces. In the US, the average occupancy rate for commercial office space is $38.36 per square foot. Whereas the rent per square foot for light industrial spaces, also known as big-box distribution centers stands at $6.14 which is approximately 83.97% more affordable than commercial unit rent. In-built with different common areas and a dedicated section for office or storage area, light industrial facilities seem like a cost-effective option for business owners.

3. Security

Typically, light industrial units are secured with metal walls and bolted doors that provide them with strong resistance against break-ins. By constructing the entry/exit points with sturdy locks and shutters, developers restrict any unwanted visitors. If buildings are situated in local industrial parks, they will have CCTV surveillance cameras around the perimeter and 24/7 on-site security personnel guarding the units.

4. Ample Space for Expansion

For business owners planning to expand their company in the upcoming period, having extra property space is an attractive feature. Lessors can rent an industrial space from 400 sq. ft. to 120,000 sq. ft. depending on their provision for future expansion. Medical facilities and laboratories often lease extra industrial units to have enough space for opening new wards or research equipment. Furthermore, technological advances enable business owners to set up affordable mobile manufacturing equipment conveniently in these properties.

5. Convenience of Location

In most cases, light industrial buildings are located within a larger industrial park or adjacent to other business centers. They enjoy access to major transportation pathways that provide online retailers with a competitive advantage in shipping their products. Some industrial facilities are next to bustling neighborhoods, which puts them in close proximity to customers and locals. Thus, the location of the industrial units plays a critical role in business growth.

6. Last Mile Strategy

As an increasing number of e-commerce companies are offering same-day deliveries, retailers and logistics operators are now employing the “last mile strategy”. Unlike mega warehouses, light industrial buildings store items based on customers’ purchase habits in limited quantities that are readily available for faster customer deliveries. For example, if a buyer living in San Francisco is purchasing a product from a warehouse located in Oakland, it is possible that the delivery will take place the same day or the next day.

Considering a multitude of benefits including enhanced customer service, cost-effectiveness, business reputation growth, and tight security measures, light industrial building construction will continue to be in demand among clients in the upcoming years.

Light Industrial Construction: Top Challenges

Here are the top common challenges that arise in light industrial construction projects and recommended solutions for building contractors to overcome them.

Challenge 1 – Accessibility

The foremost priority of industrial contractors should be to build accessible spaces for all employees and clients. Industrial units are built to accommodate stock, production machinery, and workers, hence, their construction is relatively large-scale.

Here are the key accessibility features to provide during light industrial construction:

• Accessible entrances, exits, bathrooms, and equipment storage area.
• Keeping the entrance opening at least 32 inches with an accessible threshold. The door opening force should meet the client’s requirements.
• Employees should be able to operate the door equipment with one hand. Builders can install lever-style door handles, automatic sliding doors, foot/voice-operated door openers, or access control systems for a struggle-free entry.
• Providing high ceilings, plenty of open space, and large doors to allow easy access for deliveries both in and out.
• Developing accessible egress routes for various parts of the building in case of any emergency.
• Creating a universal design for all spaces and elements in order to serve everyone.

Challenge 2 – Flexible Building Design

The best industrial units are designed and constructed with functionality in mind so that every square inch can be utilized effectively. Commercial contractors working in the light industrial sector should take into account the following design considerations to allow flexibility for every business type:

• As land is becoming costlier and scarcer, inventory space in light industrial buildings is being optimized for maximum space use. Units should be designed with higher bays to leverage vertical storage. Adequate circulation paths are necessary for navigating employees and machinery.
• Include high voltage power supply to all shop areas and a dedicated circuit for individual machine stations at 250 SF per machine station. The average power requirement for this type of facility is 2,000 amperes.
• Light industrial properties usually have a one-floor drain for every two building bays, apart from sand and oil traps on waste lines.
• Take into account the live loads of stored materials and associated handling equipment while designing the structure. Ensure racking arrangements in seismic zones are resilient and properly braced.
• Certain industrial facilities have docking areas for truck deliveries. There will be 1 electro-hydraulic dock leveler for every 5 truck bays.
• Usually, light industrial space types have a higher average ratio of square feet to one dock ranging from 10,000 to 15,000 to one dock. Contractors need to meet the specific space requirements for their client’s business.

With high bays for storage, a high voltage power supply for running production equipment, and a central floor layout, these provisions will bring functionality and make the facility operational.

Challenge 3 – Sustainable Energy Systems

In the midst of environmentally conscious times, one challenge light industrial construction teams face is to strike a balance between versatile design, constructability, and clients’ sustainability goals.

By implanting these considerations, they can achieve a low-emission facility design.

• Flexible industrial-grade HVAC (heating, ventilation, air conditioning, and cooling) systems to allow future changes based on manufacturing or product emissions.
• Hazardous materials storage areas with petroleum, aerosol, paint, or other toxic substances should have adequate ventilation and 100% exhaust.
• Known as the “silent killer”, carbon monoxide is a fatal, colorless gas present around combustion gas engines. To curb its emission levels, install carbon monoxide detectors and combustible gas detectors. Make sure both are integrated into the alarm and exhaust ventilation systems.
• Design effective placement of windows and skylights to provide natural daylight and reduce electric lighting costs.
• Incorporate energy-efficient HVAC systems, industrial lighting fixtures, and appliances into the space.
• Employ smart building technologies, motion sensors, and lighting controls to make sustainable use of energy.

Challenge 4 – Functionality

Since industrial spaces support highly specialized equipment, contractors should have a practical understanding of workflow optimization and operational efficiency. The construction process must include plans to –

• Integrate advanced technological tools based on the business type to enhance the productivity of the workflow.
• Smart technologies like Automated picking tools, Automatic Guided Vehicles (AGVs), Warehouse Management Systems, and IoT (Internet of Things) implementation can be used keeping in mind the client’s budget limitations.
• Performing regular maintenance of industrial equipment and technology will enhance the quality of the services or products produced, thereby improving business reputation.
• Design spaces that support both individual as well as the team, allowing and encouraging collaboration with other organizations or groups. Shared R&D labs, workbenches equipped with tools, machinery, and community lounges help foster employee innovation and cross-organization collaboration.
• Address the thermal, visual, and acoustic comfort in the space.

Challenge 5 – Safety and Security

The Occupancy Group Classification for light industrial properties is Factory Industrial Group F-1, Moderate Hazard. Maintaining a secure and healthy work environment for light industrial workers is a serious challenge contractors face.

Here are top factors to consider when it comes to industrial building safety.

• Typical of industrial spaces, there is constant handling and storage of hazardous materials by the employees. Contractors must build isolated dry, cool storage areas with adequate ventilation.
• Inspect if all containers are tightly sealed and have lids. Appropriately closed containers prevent leaks, spills, or releases of toxic materials.
• Additionally, label hazardous waste and ensure the workers receive adequate training on safety regulations.
• Light industrial tenants are majorly involved in the supply chain distribution, for example, delivery service providers. Hence, it’s of great importance for developers to optimize routes for hazardous material handling. In this way, workers can safely move, store and protect products throughout the material pickup process.
• Every industrial building should have emergency lighting fixtures. Long-life LED emergency lights will help property managers to ensure safe exists in times of unforeseen circumstances.
• Plan network security measures to safeguard the data and programs related to the company’s work processes. Installing on-site security personnel and 24/7 surveillance camera systems will play a critical role in maintaining overall property safety.
• Another challenge is to make building systems function properly during emergencies or natural disasters. Identify and build accessible routes for egress in case of emergencies.

Challenge 6 – Zoning Requirements and Approvals

It is paramount that business owners hire local commercial contractors familiar with zoning requirements who will obtain all necessary permits for light industrial projects.

Some of the challenges related to the zoning regulations and approvals are as follows:

• Owing to the complex functions of light industrial buildings, construction of light industrial units must be performed within the allowed building zones, accommodating both the present and future needs of the business.
• The minimum codes and standards relevant to light industrial construction projects are – GSA PBS-P100 Facilities Standards for the Public Buildings Service and ICC IBC International Building Code. Architects, contractors, and engineers must implement additional requirements if applicable to the projects.
• When repurposing commercial buildings into light industrial spaces, it is mandatory to gain landlord or property-owner approvals before leasing the property. Incorporate lease terms and conditions into the contract only after negotiating them with the landlord.
• When planning to lease commercial spaces for light industrial use, tenants must stay one step ahead in identifying potential issues and discuss the solutions with their building contractors.

Case Study – Brewery

Barrel Kings Co., San Mateo

Project Details – Barrel Kings Co. is a modern craft beer brewery and distributor based in San Mateo, US. The company brews a variety of beer styles, including lagers, stouts, sours, and Belgian-inspired drinks. As part of business expansion, the owners look forward to opening an 80,000 square feet brewing facility in the city’s industrial park.

Challenge – For this project, a commercial office facility will be transformed into a light industrial building by the hired commercial contractor. In addition to the brewery, the owners want to launch a taproom business, offering customers a chance to taste craft beers and witness the brewing process. Hence, the construction company has to balance the operational requirements of the taproom and fermentation facilities in one location.

Solutions – Once the commercial construction company analyzed the whole brewing and fermentation process, workflow, and workers’ operations, they devised and executed the following solutions.

1. Space Planning

The contractor and their team made a clear separation between the brewing and fermentation areas, providing them with dedicated space and equipment. For example, arranging mash tun, brew kettle, and hot liquor tank next to each other for simplifying the transfer of ingredients during brewing.

The architect designed the floor layout based on the direction of product flow, ergonomic factors, and safety precautions. Smart automation and monitoring systems were installed to streamline operations and gain real-time data on beer fermentation progress.

Moreover, the team added multiple bays for simultaneous truck loading unloading operations and implemented an inventory management system for tracking stock of raw materials. An office space was created for administration purposes.

2. Equipment and Utilities

Offered state-of-the-art industrial brewing equipment that enabled the processing of traditional and alternative starch sources with high-gravity brewing and the use of downstream products. Installed process pipework and integrated all required utilities in beer production areas.

3. Beer Storage and Packaging

Dedicated sections for bottling and kegging operations were kept at cold temperatures. The kegs were placed in cold storage, at approximately 3°C (38°F), until ready for distribution.

The packaging areas of beer bottles were kept at approximately 11°C (52°F). Cool conditions help in delaying the effects of heat while also avoiding excessive condensation that can ruin bottle labels.

4. Taproom

After understanding the client’s vision, the contractor along with the design team built a taproom within the facility where fermentation tanks were placed. The tap wall featured a rotation of the brewery’s handcrafted beers for visitors to taste. Staying aligned with brand identity, the entire bar section provided comfortable wooden seating which only elevated the tasting experience.

A designated path was created in the layout for guided brewery tours so that visitors can witness the brewing and fermentation processes. The team also constructed an outdoor patio meant for outdoor dining where they placed some community tables and chairs.

Results – The building contractor was successful in merging the fermentation and taproom facilities into one light industrial unit. Spacing planning and equipment placement helped workers to efficiently use the space. Most importantly, the logical sequencing of workstations and taproom ensured that visitors are able to experience the brewery without disrupting the production process. Overall, the client was satisfied with the commercial contractor’s performance.

Conclusion

The main advantage of constructing light industrial properties is that they can take several different forms, adapting to the unique specifications of each business type. It’s the perfect open field for commercial tenants to modify and harmonize their manufacturing, distribution, and office operations at a single facility. However, pulling off a successful light industrial construction needs the hiring of an experienced commercial contractor knowledgeable of regulatory compliance and project management.

Constructive Solutions, Inc. prides itself in constructing/managing various heavy and light industrial projects across San Francisco Bay Area, San Jose, and San Mateo. Discover our portfolio of finished projects.

Contact us today to discuss your next project.

FAQs

What is the difference between heavy and light manufacturing?

The difference between light and heavy industry is that the former makes small products in factory units for customers while the latter has giant plants that supply large-scale businesses. Light industry needs minimum capital investment while heavy industry is capital intensive.

What services does a light industrial construction company offer?

Light industrial construction services include:

• Office/warehouse build-outs and renovations of existing spaces
• Expansion of warehouses or office spaces
• Building structural support systems
• Pipe installation and labeling
• Mezzanine installation
• Installation of manufacturing machinery and equipment
• Atmosphere control services
• Sustainable construction practices
• Implementation of safety features for example, fire protection systems, detectors, automated monitoring systems, etc.

Which type of businesses can operate in a light industrial unit?

Production and manufacturing, retailers, dark kitchens, gymnasiums, art galleries, printing press, electronics assembly units, and research centres are some of the industries operable in a light industrial unit.

Relevant Resources:

• Different Types of Industrial Buildings and their Characteristics
• Industrial vs. Commercial Construction : What’s the Difference?