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"Our new developments incorporate energy-efficient HVAC systems, on-site renewable energy options, and LEED or similar certifications wherever possible."
- Michael Brazeal, Manager of Development Transactions, Central Region
CenterPoint’s Manager of Development Transactions in the Central Region, Michael Brazeal, was featured in Chicago Industrial Properties’ article “Sustainability, Strategic Sites Shape 2025 Industrial Outlook in Chicago.”
CIP: With industrial construction slowing, what factors are guiding your decisions on which projects to greenlight or pause in 2025?
Brazeal: We’ve been more cautious about which projects to greenlight. Our primary focus is on market demand indicators, especially absorption of record construction deliveries. For speculative projects, we’re reassessing how well they align with long-term demand, factoring in the sector’s growth and tenant readiness.
CIP: How are you balancing the anticipated demand for industrial space with the rising costs of construction and supply chain constraints?
Brazeal: The spike in construction costs we saw during COVID has stabilized for the most part. More importantly, rent growth over the past couple of years has offset these rising costs.
CIP: Are there specific types of industrial developments—like cold storage or last-mile logistics facilities—that you’re prioritizing to meet 2025 demand?
Brazeal: The industry is focused on cold storage, data centers, and last-mile logistics. CenterPoint is keeping up to date on all three, with most of our focus on last-mile logistics and bulk distribution facilities. We are seeking irreplaceable infill locations to accommodate current and new tenants within our portfolio who are looking to significantly increase their supply chain efficiency and provide bulk distribution facilities within our intermodal campus.
CIP: How are sustainability initiatives influencing your 2025 developments, especially as tenants prioritize energy-efficient and eco-friendly facilities?
Brazeal: Sustainability is central to our planning, with tenants now actively seeking eco-friendly facilities. Our new developments incorporate energy-efficient HVAC systems, on-site renewable energy options, and LEED or similar certifications wherever possible. We’re also looking at sustainable materials and construction practices to reduce carbon footprints. These initiatives not only meet tenant preferences but position our projects to adapt to future regulations and ESG expectations.
CIP: Can you share any insights on the major projects expected to deliver or break ground in 2025, and how they’ll impact the local industrial market?
Brazeal: We anticipate delivering the next bulk logistics facility in the Chicagoland area. With very few starts in the recent quarters, new deliveries will be essential to meeting continued tenant demand.
CIP: Is there anything else you’d like to add?
Brazeal: The national and local (Chicago) sentiment continues to improve as we head into 2025. We expect leasing activity to continue holding steady and construction levels to begin rising to a healthy level.
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