Insights

For many industrial operators, the company’s most valuable asset (real estate) is also the least productive. Millions of dollars in equity remain trapped in concrete and steel, while high-return priorities, such as equipment, automation, inventory, or market expansion, compete for limited capital. A build-to-suit (BTS) triple-net (NNN) lease is a proven solution for financing new, purpose-built facilities. But what if your facility already exists and needs to be modernized or adapted for a new purpose?

To compete with and meet rigorous market and regulatory requirements, many industrial operators require new purpose-built facilities that precisely match their specific process flows, utility demands, and site conditions. The question is how to balance the competing capital needs of high-return, high-dollar priorities, such as automation, equipment, inventory, or market expansion, against the cost of developing and constructing a modern, high-performing, customized facility.

The One Big Beautiful Bill is now Public Law 119-21, passed on July 4, 2025. The law features several powerful new financial incentives, including the Special Depreciation Allowance for Qualified Production Property (Section 70307). This article is for decision-makers to better understand and leverage the law in planning, designing, and implementing a related CapEx project.

The delivery and contracting of an industrial facility project are complex processes involving many parties performing a wide array of services that support design, engineering, pre-construction, construction, and commissioning solutions. This article discusses construction contract types, the importance of a properly aligned contract, how to choose, and a comparison of the most common types used for high-performance industrial facility projects.