Infill Strategy

AMB's research paper titled "The Benefits of a Long-Term Infill Strategy" examines the variables that define the two main types of industrial real estate sites (infill and greenfield) and concludes that a property owner having a long-term infill strategy enjoys superior occupancy, rental growth and returns, and efficient supply chain operations. In addition, the study shows that infill locations are more sustainable. Our conclusion is that for industrial property owners and developers a comprehensive infill strategy is good for business while at the same time being good for society and the environment.

Key Findings:

• Infill submarkets have enjoyed a 305 basis point advantage over greenfield sites in occupancy over the last ten years. This has led to much lower volatility in rents and a 310 bps annual return premium..
• 85% of the entire U.S. economic activity and population can be reached within a single day’s truck trip of the most economically dense areas.
• 22% supply chain savings in mileage from infill industrial centers and 21% in cost savings.
• 23% reduction in carbon emissions and overall air pollution at infill versus greenfield.
• 1 billion gallons of fuel could be saved by shifting to more infill industrial sites.

Please click here to view AMB's Infill Research piece.