Area Development Q4 2025

Tariffs Hit Warehousing Page 26

Leading Metro Locations 2025

Permitting Pain Points Page 28

Page 30

SITE

AND

FACILITY

PLANNING

Q4 2025

THE WORKFORCE AMERICA NEEDS Page 56

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CNBC, 2007 | 2009 | 2011 | 2019 | 2021 | 2024

1 # 1 #

WORKFORCE TRAINING PROGRAM AREA DEVELOPMENT, 2025

CUSTOMIZED WORKFORCE TRAINING LEADER IN THE U.S. BUSINESS FACILITIES, 2023 | 2024 | 2025

DOWNTOWN RICHMOND

Virginia’s talent solution for companies starts with the top-ranked education system in the country (CNBC, 2025).

From there, companies relocating or expanding in Virginia can benefit from the Virginia Talent Accelerator Program, ranked as the top customized workforce training program in the country three years running. The Talent Accelerator delivers recruitment and training services that are fully customized to a company’s unique needs, provided at no cost to them. Find out how Virginia can deliver the workforce your company needs.

FIND YOUR ADVANTAGE AT VEDP.ORG

AGE LIFE SCIENCES SUCCESSES VALIDATE VIRGINIA’S PARTNERSHIP-FOCUSED ECONOMIC DEVELOPMENT MODEL

By Virginia Economic Development Partnership

V

irginia is closing 2025 with a great deal of momentum in the life sciences space, with multi-billion-dollar investments from Eli Lilly and Company and AstraZeneca choosing the Commonwealth for their latest expansions and Merck & Co. breaking ground on its new manufacturing facility at its existing Elkton site. The announcements highlight two of Virginia’s greatest strengths in the life sciences industry — workforce and site development — and speak to a growing consensus that the Commonwealth can deliver what companies need, quickly.

“We want to be able to work with partners in the permitting sector that understand us, that we can trust and move fast,” AstraZeneca CEO Pascal Soriot said. “Virginia’s team is extremely fast. We as a company always say ‘AstraZeneca speed’ — there’s competition and we need to move fast. We’ve discovered the world of Virginia speed. They move so quickly.”

What appears from the outside as sudden success is the result of a strategy years in the making. Virginia has spent decades aligning education, workforce, research and development, sites, and logistics to the needs of an industry defined by precision, scale, and speed. Today, Virginia offers executives a rapidly deployable, end-to-end platform to produce the next generation of medicines — and a proof of concept that its economic development and permitting model works.

Virginia’s educational excellence is well established, having been ranked No. 1 in education for the past three consecutive years and six times total by CNBC. Virginia’s K-12 system, colleges and universities, and workforce development programs ensure companies have access to a highly skilled workforce.

Flagship institutions like Virginia Commonwealth University (including the Medicines for All Institute), the University of Virginia (with the Paul and Diane Manning Institute of Biotechnology), and Virginia Tech (and its Fralin Biomedical Research Institute at VTC, associated with the Virginia Tech Carilion School of Medicine) are nationally recognized for educating engineers and scientists while advancing medical research.

The Virginia Talent Accelerator Program, ranked as the No. 1 customized workforce training program in the United States by Business Facilities the last three years, is a key point in Virginia’s workforce pitch to prospective companies. The program, created by VEDP in collaboration with the Virginia Community College System and other higher education partners, provides world-class training and recruitment solutions that are fully customized to a given company’s needs. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation. Lilly, AstraZeneca, and Merck are all using Talent Accelerator services to staff their new facilities.

Q4 2025

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AstraZeneca CEO Pascal Soriot. Courtesy VEDP.

AstraZeneca also capitalized on another VEDP program helping attract businesses to the Commonwealth: the Virginia Business Ready Sites Program (VBRSP), which identifies and assesses the readiness of potential industrial sites. The program helps to develop the sites and obtain permits and approvals to make for a smoother construction process. The VBRSP helps Virginia improve companies’ speed to market, and its preparation efforts are aimed at getting new facilities up and running as efficiently as possible.

Global industry leaders are validating the Commonwealth’s model. The new investments by AstraZeneca, Lilly, and Merck affirm Virginia’s capabilities and will strengthen Virginia’s momentum in attracting and retaining talent. The ripple effect creates more opportunity for students, more choice for companies, and a deeper ecosystem for innovation in Virginia.

This article was paid for and written by Virginia Economic Development Partnership and approved by Area Development.

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Contents | Volume 60 Number 4 | Q4 2025 Annual Report

Leading Metro Locations page 30

Which metros are capturing the momentum of 2025? Drawing on our partner Chmura Analytics’ labor, GDP, and industry data, we spotlight the regions outpacing their peers in talent, investment, and long-term economic resilience — and break down which markets are gaining traction.

FEATURES PAGE 20

PAGE 26

PAGE 28

Why Utilities are Becoming Developers

Tariff Pressure Hits Warehousing

The Permitting Puzzle

Energy access, ownership models, and land strategy define competition, influencing everything from project feasibility to permitting timelines and long-term operational risk.

Rising costs, shifting consumer sentiment, and slowing e-commerce growth are reshaping warehouse and distribution markets across the country.

Delays can derail even the best-planned projects. Here are practical steps companies can take during site selection to anticipate permitting hurdles — and keep construction on schedule.

PAGE 50

PAGE 52

PAGE 54

How to Know If a Community Is Ready for Your Investment

Prepare Yourself for USMCA II

Site Readiness Is Broken

We outline the practical markers that corporate decision-makers should look for to identify places capable of supporting fast, predictable, and long-term growth.

As the U.S., Mexico, and Canada move toward high-stakes renegotiations, companies with cross-border supply chains need to plan for new tariff structures, sector-specific revisions, and evolving rules of origin.

Even strong-performing markets are struggling to deliver sites that meet today’s power, workforce, infrastructure, and timeline demands. Companies must demand better.

Area Development® Site & Facility Planning (USPS 345-510) is published four times per year (Q1, Q2, Q3, and Q4) at St. Joseph, MI, by Halcyon Business Publications, Inc., 30 Jericho Executive Plaza­– Ste 400W Jericho, NY 11753. Periodicals postage paid at Jericho, NY, and additional offices. Single copies, $20. Yearly subscription U.S. & Canada, $75; foreign, $95.

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WORKFORCE SPECIAL SECTION America’s next wave of factories will rise where talent can keep pace. This section explores shifting worker profiles, training capacity, and the signals that reveal whether a region is truly prepared for long-term growth.

56 Cover Story: America’s Skilled Trades Bottleneck Area Development partnered with Lightcast to assess America’s labor pipeline, and the future for skilled trades presents significant challenges. Here’s a national analysis of the training gaps slowing the manufacturing comeback — and what’s at stake.

DEPARTMENTS 6 Editor’s Note Looking back at 2025, the year discipline returned

10 Featured Contributors Meet the thought leaders who shared their expertise in Q4

12 Data Warehouse A closer look at U.S. industrial energy prices

14 In Focus Eric Stavriotis’ notes from Korea

16 From the Podcast Excertps from Rich McKay, Lee Lilley, Nina Urban and more.

18 Frontline Innovations and project insights from around the country • Timber Indiana 64 Why Human Needs Drive Site Selection Hybrid work and shifting life priorities are transforming how companies choose where to locate. Understanding people — not just costs — is driving a new generation of human-centric location strategies.

66 Are Skilled Trades Ready for a Digital Future?

• Urban Ramp Manhattan • Fort Worth Front Door • Hide and Seek Data Centers

As retirements accelerate and demand surges, AI-powered tools are helping tradespeople focus on their craft, safety, and training — redefining what it means to work with your hands in a digital age.

22 First Person

68 Generational Forces at Work

uranium

Generational divides are shaping site selection and workplace design. From Boomers to Gen Z, companies must adapt their strategies to attract talent across age groups.

72 Last Word

Nano Nuclear’s James Walker on small modular reactors and

Why you must pay attention to Opportunity Zones

Printed in the USA. Copyright 2025 Area Development® magazine. All rights reserved. No part of this publication may be reproduced or transmitted win any form or by any means, electronic or mechanical, including photocopy, recordings, or any information storage or retrieval system, without permission. Area Development® magazine does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of causation. The views and opinions in the articles herein are not those of the publishers, unless indicated. The publishers do not warrant, either expressly or by implication, the factual accuracy of the articles herein, or of any views or opinions offered by the authors of said articles. All images are sourced from Adobe Stock unless otherwise noted.

A Note on AI in our Magazine At Area Development, we use AI tools to support—but not replace—our editorial process. We employ AI for copy editing, style checks, and condensing transcripts, always under human supervision. We do not use AI for independent fact gathering or unsupervised content creation. All reported content is reviewed by experienced editors to ensure accuracy, integrity, and journalistic quality.

POSTMASTER: Send address changes to Area Development, Circulation Department, 30 Jericho Executive Plaza­– Ste 400W Jericho, NY 11753. Subscribers requesting address changes must provide both old and new addresses. © Copyright 2025 by Area Development® magazine. ISSN: 1048-6534. Printed in the U.S.A. Area Development® is a registered trademark of Halcyon Business Publications, Inc.

Q4 2025

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Choosing where to move or grow your business could be full of unexpected setbacks. Or not.

Ohio is all-in on your growth. That’s why we’ve invested billions in ready-to-build sites so your company can scale faster and reinvest in what matters.

JOBSOHIO.COM

Figuring out where to build is half the battle.

We took care of the other half.

Ohio is all-in on your growth. That’s why we’ve invested billions in ready-to-build sites so your company can scale faster and reinvest in what matters.

JOBSOHIO.COM

Editor’s Note Q4 2025

The Year Site Selection Grew Up

I

f 2024 was the year of speed, 2025 was the year of discipline. After the rush of post-pandemic reshoring, companies began making more deliberate choices — asking tougher questions about energy, workforce, and long-term resilience.

Energy availability became the year’s defining storyline. Data centers, electric-vehicle plants, and advanced manufacturers all competed for grid capacity, turning power into the new gatekeeper of growth. Conversations that once revolved around land and logistics now start with megawatts.

Workforce remained the other constant, but the definition of readiness expanded. It’s no longer just about skills training; it’s about housing, transportation, childcare, and community fit — the real-world factors that determine whether people can stay and thrive. Across the country, we saw states and regions adapt by blending customized training with quality-of-life investments.

And then there was the quiet rise of the middle. Micropolitan areas and midsize metros captured a greater share of investment this year, driven by affordability, infrastructure upgrades,

and responsive local leadership. They proved that growth no longer belongs only to the nation’s largest markets.

Taken together, these shifts mark a maturing moment for site selection. The conversation has moved beyond incentives and speed to a broader focus on stability, sustainability, and smart growth.

Companies are planning not just for the next five years, but for the next generation.

At Area Development, our mission is to help decision-makers navigate that evolution — to connect the data, trends, and real-world stories that define what’s next. As we close out 2025, one thing feels certain: the future of business growth will belong to those who build it carefully.

Editor Andy Greiner

2025 EDITORIAL ADVISORY BOARD

Scott Kupperman Founder

Courtney Dunbar Site Selection & Economic Development Leader

Chris Volney Managing Director,

Lauren Berry Director, Location

BURNS & MCDONNELL

CBRE

MAXIS ADVISORS

Advisory & Transaction Services

Stephen Gray President & CEO

Matthew R. Powers, Lead Site

Courtland Robinson Director of

Brian Corde Managing Partner

Bradley Migdal Executive Managing

REDI SITE SELECTION

BRASFIELD & GORRIE

Scott J. Ziance Partner and Economic Incentives Practice Leader

Dianne Jones Managing Director,

KUPPERMAN LOCATION SOLUTIONS

Eric Stavriotis Vice Chairman, CBRE

ATLAS INSIGHT

Amy Gerber Executive Managing

GRAY, INC.

Director, Americas, Strategic Consulting

CUSHMAN & WAKEFIELD

Americas Consulting

Selection Consultant

VORYS, SATER, SEYMOUR AND PEASE LLP

Director, Business Incentives Practice

Marc Beauchamp President

Alexandra Segers General Manager

David Hickey Managing Director

Dennis Cuneo Owner

Chris Schwinden Partner

Director, Global Strategy Consulting

Publisher Dennis J. Shea dshea@areadevelopment.com

Editor Andy Greiner editor@areadevelopment.com

Production Manager Jessica Whitebook jessica@areadevelopment.com

Sydney Russell, Publisher 1965-1986

Staff and Contributing Editors Kimberly Graulein Amy Matias Kathy Webster Mark Schantz Steve Kaelble

Web Designer Carmela Emerson

CUSHMAN & WAKEFIELD TOCHI ADVISORS

DC STRATEGIC ADVISORS

SCI GLOBAL

HICKEY & ASSOCIATES

SITE SELECTION GROUP

Chris Chmura, Ph.D. CEO & Founder CHMURA ECONOMICS & ANALYTICS

Alan Reeves Senior Managing NEWMARK

Analysis and Incentives

Business Development

Business and Economic Incentives

JLL

Joe Dunlap Founder & Advisor, BLUEJ ADVISORS

Scott Canada President,

Mission Critcal MCCARTHY

AREA DEVELOPMENT

Events / Business Development Director Matthew Shea (ext. 231) mshea@areadevelopment.com Media / Accounts Director Justin Shea (ext. 220) jshea@areadevelopment.com

Circulation/Subscriptions circ@areadevelopment.com

Print Designer Victoria Corish Business/Finance Assistant Barbara Olsen (ext. 225) olsen@areadevelopment.com finance@areadevelopment.com

Halcyon Business Publications, Inc. President Dennis J. Shea Correspondence to: Area Development Magazine 30 Jericho Executive Plaza­ Suite 400 W Jericho, NY 11753 Phone: 516.338.0900 Toll Free: 800.735.2732 Fax: 516.338.0100

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Navigating the fastest course from investment to profit?

Mississippi gets your business off to the races.

From prototyping and site selection to manufacturing and logistics, we help you get to market fast and earn money faster.

Let’s break new ground together.

mississippi.org

AGE STRATEGY DRIVEN LOCATION DECISIONS

By Tommy Hyde, Chief of Staff, AdvanceCT

C

onnecticut has long occupied a distinctive position in the U.S. economy — small in geography, but large in talent, innovation, and economic diversity. From its highly educated workforce and concentration of advanced industries to its strategic access to major markets, the state offers a unique environment for companies seeking long-term, sustainable growth. Yet too often, businesses selecting new sites or expanding operations begin their search with a narrow question: Where is the cheapest place to operate? Although cost is undeniably a factor in any business decision, it should not be the primary driver, especially now when technology and automation drive business success.

A more strategic approach, and one that Connecticut exemplifies, begins with a deeper question: Which location’s assets best align with the function we need this business unit to perform? This shift in thinking encourages companies to match their operational needs with local strengths: workforce capabilities, industry clusters, transportation infrastructure, academic research, supply-chain connectivity, and overall quality of life. When businesses approach location strategy this way, they not only reduce long-term risk but also position themselves for higher productivity and stronger returns.

Connecticut’s Asset-Driven Advantages

Connecticut’s economic potential stems from several interlocking assets that support the full spectrum of modern industry. The state has one of the most educated workforces in the country.

With major universities, research institutions, and a steady pipeline of STEM graduates, Connecticut consistently ranks at the top for workforce quality. Companies in aerospace, bioscience, insurance and financial services, advanced manufacturing, and technology rely heavily on specialized talent, and Connecticut delivers.

Connecticut’s location is strategically unmatched, situated directly between New York City and Boston, giving companies access to two of the world’s most dynamic economic centers while

avoiding many of their operational challenges and high costs. For companies that depend on proximity to clients, partners, investors, or distribution networks, the state’s highways, rail access, ports, and airports make it easy to compete regionally, nationally, and globally.

Connecticut has also cultivated strong industry clusters, with interconnected companies, suppliers, academic partners, and research organizations. Aerospace and defense firms benefit from decades of engineering expertise centered around companies like Pratt & Whitney, Sikorsky, and Electric Boat. Bioscience companies — especially in gene therapy, medical research, and pharmaceutical development — leverage the resources of Yale, UConn, and a growing network of labs, incubators, and startups. The next generation of AI-enabling quantum computing research and development is centered around Yale, one of the first and few quantum institutes in the world. These clusters generate innovation, reduce barriers to collaboration, and accelerate the development of new products and technologies.

Due to Connecticut’s size, we are often referred to as the “One Phone Call State,” which is also a strategic advantage for businesses. Strong networks and accessible governmental structures allow any company to be one call away from the right person to address their needs.

Connecticut as a Case Study in Asset Matching

Connecticut’s economic development strategy emphasizes helping companies find the right home based on the assets needed to be successful and thrive long term. When a biotech firm chooses Connecticut, it is choosing access to world-class researchers, clinical trial networks, wet-lab space, and highly specialized talent. When an aerospace manufacturer expands here, it benefits from deep precision engineering expertise, established supplier networks, and institutional knowledge that cannot be replicated in lower-cost regions.

A Smart, Asset-Driven Future

As the economy evolves, companies that make location decisions based on long-term strategic fit, not short-term savings, will lead their industries. Connecticut’s educated workforce, research capacity, industry clusters, and strong quality of life position the state as an ideal location for companies that want to grow intelligently, innovate continuously, and build resilience.

Choosing a location intentionally, based on what a region offers rather than what it costs, is a foundation for lasting competitive advantage.

This advertisement was written by AdvanceCT and approved by Area Development.

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YOU CAN’T FLY WITHOUT

CONNECTICUT

Connecticut is home to Sikorsky, Pratt & Whitney, and hundreds of aerospace firms manufacturing everything from helicopters to jet engines. Nearly ¼ of all U.S. aircraft engines and parts are made here by the most highly productive and skilled aerospace workforce in the world. Quite literally, nothing flies without Connecticut.

advancect.org

Featured Contributors Q4 2025

Kate Crowley

Kate Crowley, Principal at CapCivic, specializes in capital solutions for development and expansion projects, advising on strategic planning, incentives, tax credits, impact analysis, and creative financing for complex real estate initiatives.

Page 72

Chris Volney

Chris Volney, Managing Director at CBRE, specializes in analytics-driven location strategy for high-growth companies. He brings 15 years of global site selection experience from CBRE, Newmark, and Savills. Page 68

Marissa Huber

Marissa Huber, Consulting Director at Cushman & Wakefield, advises on workplace strategy and portfolio planning, backed by 20 years managing large, complex corporate real estate portfolios for major U.S. organizations. Page 64

Brad Migdal

Brad Migdal of Cushman & Wakefield specializes in corporate site selection, workforce strategy, and developing innovative solutions for industrial real estate. Page 54

Charlie Smith

Charlie Smith brings 12 years of experience in international strategy, geopolitics, and business development, providing data-driven insights that identify risks, support strategic decisions, and help organizations grow amid uncertainty.

Page 52

Taylor Stepp

Taylor Stepp, a credits and incentives consultant at EY, manages more than $20 billion in capital projects, specializing in site selection and economic development across manufacturing, tech, energy, and advanced industries. Page 50

Lauren Berry

Lauren Berry, Director at Maxis Advisors, leads site selection and incentives advisory work, drawing on her economic development background to guide clients through talent, real estate, and incentive decisions. Page 28

Andrew Sineni

Andrew Sineni, Senior Vice President at Foundry Commercial, oversees build-to-suit development projects across the Southeast and Texas, with prior leadership roles in CBRE project management and commercial development.

Page 28

Ermengarde Jabir

Ermendgarde Jabir, of Moody’s Analytics, holds a PhD and provides economic forecasting and market analysis to guide corporate expansion and site selection decisions. Page 26

Puanani Norwood

Puanani Norwood, Los Angeles Managing Partner at BCLP, focuses on commercial real estate within the energy sector, advising utilities on acquisitions and development of electric generation projects nationwide. Page 20

Eric Stavriotis

Eric Stavriotis, Vice Chairman at CBRE, leads the Location Incentives practice. He has guided 350-plus site selection projects and secured over $1.9 billion in incentives across industries. Page 14

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Your Future.

Made in Arizona.

Arizona is the national model for innovative and successful workforce development programs.

The Arizona Commerce Authority’s collaborative approach brings together government, academia and industry to develop comprehensive, award-winning and scalable solutions. The Future48 Workforce Accelerators represent Arizona’s latest workforce advancement, connecting students with the skills and know-how needed for jobs in the state’s growing advanced manufacturing industry. The new workforce development facilities will be located throughout the state and provide customized training in key advanced manufacturing segments such as semiconductor, battery, automotive, aerospace & defense, and more.

Learn more at Future48.com

Data Warehouse

Red Flags for Energy Average Industrial Price for Electricity $5.6

$34.13 KWH

California $21.53 KWH Texas $6.12 KWH

Tennessee $6.21 KWH

Massachusetts $18.19 KWH New York $13.82 KWH

Pennsylvania $7.87 KWH

Louisiana $5.61 KWH

Hawaii $34.13 KWH

+13% Rising National Baseline 2019 $7.2

2024 $8.13

Wind Solar Generation 3.7% 2024 2025

2025 $8.6

2026 $8.7

Grid Demand 3.4% 2024

2025

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SEE WHAT

THEY SEE From Amazon and Stuller to CGI and more, see why the nation’s biggest players are choosing to bring their vision of success to life in Lafayette, Louisiana.

LOOKTOLAFAYETTE.com

aulein

In Focus

Korea’s Blueprint for Sustainable U.S. Expansion Why advanced manufacturers are treating site selection as a long-term business strategy, not a transaction

By Kimberly Graulein with exclusive reporting from CBRE’s Eric Stavriotis

hen Area Development heard that Eric Stavriotis, Vice Chairman at CBRE Advisory Services, was headed to Seoul to speak at a U.S. Site Selection Seminar co-hosted by the American Chamber of Commerce in Korea (AMCHAM) and CBRE’s Korea Desk North America (KDNA), we asked him to take some notes for our readers.

The event brought together executives from South Korea’s leading manufacturers and suppliers—many now among the largest sources of new foreign direct investment (FDI) in the United States—to explore what successful expansion into the U.S. really requires. The conversation, Stavriotis reported, made clear that Korean companies are approaching site selection not as a transaction, but as a longterm strategic exercise.

“Site selection for foreign direct investment is far more than a real estate transaction; it’s the foundation of long-term success,” Stavriotis said. “It requires a critical upfront definition of project requirements to select the optimal location.

Success is built on seamlessly integrating incentives, infrastructure, logistics, talent, and local partnerships to ensure a resilient platform for sustainable U.S. growth.”

That framework captures how Korean investors are managing increasingly complex projects across the American manufacturing landscape. Rather than prioritizing speed to market, they are designing investment strategies that balance capital efficiency, infrastructure readiness, workforce stability, and local integration.

As Stavriotis outlined in his notes, the most successful expansions are built upon several interconnected pillars: • Economic Incentives: Maximizing cost efficiencies and offsetting capital expenditures through proactive engagement with state and local partners.

• Essential Infrastructure: Verifying that sites have the robust power, water, and utility capacity to support both current and future operations.

• Efficient Logistics: Optimizing supply chain pathways and securing market access through multimodal connectivity.

• Skilled Talent: Ensuring access to qualified labor pools and workforce training programs aligned with advanced manufacturing needs.

• Local Partnerships: Fostering community relationships and understanding regional regulatory frameworks to sustain long-term success.

This structured approach, Stavriotis noted, mirrors the way Korean enterprises manage large-scale production

Site selection for foreign direct investment is far more than a real estate transaction; it’s the foundation of long-term success. systems—treating each decision point as part of a broader operational ecosystem. Incentives, utilities, labor, and logistics are not sequential steps; they are simultaneous considerations designed to reinforce one another.

The Korean investment model has become particularly visible in strategic sectors such as EV batteries, semiconductors, and advanced materials—industries that depend on specialized infrastructure and a skilled workforce. Many of these projects involve multi-phase master planning, where initial

anchor facilities are followed by supplier networks and R&D components, creating localized ecosystems of production.

Steven Chon, Executive Vice President at CBRE and co-leader of the firm’s Korea Desk North America, emphasized that executing this kind of strategy demands deep collaboration among advisory teams.

“A prerequisite for a successful site selection project when engaging a Korean company is the ability to provide a full scope of services—and to go the extra mile with a collaborative team approach, as the U.S. is a new market for much of the supply chain,” Chon said For U.S. stakeholders— state agencies, utilities, and local developers alike—the takeaway is clear: Korean investors are setting a new benchmark for how international projects are conceived and delivered.

Their process-driven rigor, emphasis on infrastructure verification, and commitment to community partnership reflect an understanding that success in the U.S. market is cumulative.

By treating site selection as a strategic discipline rather than a checklist, Korean companies are building more than factories—they are building advantage. And as Stavriotis’s experience in Seoul shows, that mindset may soon become the global standard for how high-value industrial investment gets done.

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THERE’S A LOT ON THE LINE. From maintaining the bottom line for small businesses to keeping the assembly line moving for our major industries, NV Energy is powering Nevada’s future.

Our economic development experts work strategically to facilitate business location and expansion within Nevada.

We can assist with pricing and renewable tariffs, site visits and provide the data critical to making an informed decision for business investment in Nevada.

We know there’s a lot on the line. That’s why we’re always there to power it.

Learn more at nvenergy.com/econdev.

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From the Podcast

Workforce, AI, and The New Industrial Worker Nicole McBride, Senior Director, CBRE Americas Consulting Group Geopolitical Strategy Consultant Area Development: When you’re advising clients, what kind of data points are most persuasive in making a location decision?

Voices on workforce, incentives, and the cities competing for what’s next All of the excerpts on this page are drawn from recent episodes of the Area Development Podcast.

Hear the complete conversations and more expert voices at AreaDevelopment.com/podcast or on Spotify.

LISTEN NOW

McBride: “So location decisions are made taking into account a significant amount of different data points, of course. So it’s hard to specify which are the most influential, especially when every conversation is a constant recalibration of what trade offs are acceptable to optimize the occupier success.

“But the data points that are particularly strong and persuasive can be the ratio of supply demand in a market for a particular skill set. That’s a… unique way to measure the level of competition from a data perspective. And also wage rates… wage rates are really a strong competitive advantage for a community, because small differences in wages can have really significant impacts for occupiers.”

I don’t think that our corporate clients always fully understand the level of work that goes into these RFI responses from communities, especially given the quick timelines that most occupiers insist that they have

Real DC Nina Albert, Deputy Mayor for Planning and Economic Development, Washington, DC delivered remarks in October.

“I am an economic development professional, and one of our strengths as a city is that we can be very nimble.

We don’t have a state to contend with, and structurally the Deputy Mayor for Planning and Economic Development co-chairs our economic development partnership — so strategy and investment stay tightly aligned. At this moment of transition, that alignment really matters. It lets us pivot quickly as the federal landscape changes.”

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Incentives: Cash, Compliance, and “Where Did The Big Checks Go?”

North Carolina On Talent & Competitiveness

Brooklyn Salemi, Newmark, and Shannon O’Hare, Cushman & Wakefield spoke on a panel at the Women In Economic Development Conference in Chicago about incentives

From our conversation with North Carolina Secretary of Commerce Lee Lilley and Chris Chung, he CEO of the Economic Development Partnership of North Carolina.

O’Hare: “Anytime you can offset… that upfront cost, whether it’s in the actual infrastructure itself that needs to happen with the site, site prep or construction of the building, or just big outlays for equipment… anything to offset that sort of upfront is… cash is king. So is up front, right. Up front cash is, like, you know, the ruler of the world.”

Breaking Down Barriers to Participation

Brooklyn Salemi, Newmark: “We’ve moved to such a performance based system, which makes perfect sense and I think keeps a lot of us comfortable, certainly helps us explain things to our communities. But there are no upfront benefits, really, that I’m familiar with at this point. They’ve all kind of gone away, and… we’re getting a lot more asks from… especially our industrial clients of like, okay, where are those big fat checks we used to hear about?”

15

that’s how many years some incentive packages still stretch, long after they stop changing project decisions

Competition In Atlanta Rich McKay, CEO of the Atlanta Falcons and MercedesBenz Stadium talked to Area Development about the boundless opportunity for the Georgia capitol.

“The challenge is wake up every day and realize you’re competing with a bunch of other cities and regions, and the day you don’t think you’re competing with them is the day you fall behind.”

Q4 2025

F - From the Podcast v02.inddc 17

“No place has 100 percent labor participation, so we’re working to increase it by breaking down barriers — housing that’s affordable and close to jobs, transportation access, and childcare. Those things can keep people on the sidelines.” — Chris Chung

Rural Readiness Still Matters

“North Carolina is the second most rural state in the country… rural communities have to have a labor catchment big enough for the employers they want to recruit. Our 58 community colleges are the key. No North Carolinian lives more than a 30-minute drive from one — and they anchor rural workforce readiness.”

— Secretary Lee Lilley 17

12/1/25 3:29 PM

Frontline

Amazon’s First Mass Timber Delivery

By Kathy Webster, Area Development Staff When Amazon set out to build its first owner-occupied delivery station using mass timber instead of concrete and steel, it chose an unexpected proving ground: Elkhart, Indiana.

The 171,000-square-foot facility, dubbed “DII5,” represents both a technical milestone and a signal of how one of the world’s largest logistics companies plans to decarbonize its building portfolio.

Constructed by Graycor Construction Company, the project is pursuing Zero Carbon Certification from the International Living Future Institute — and testing more than 40 sustainability strategies in one location.

“Before mass timber, we didn’t have a bio-based structural solution that could compete with concrete and steel at scale,” said Daniel Mallory, vice president of Global Realty at Amazon. “This project allows us to evaluate new materials and methods that could help standardize practices in an emerging industry.”

Engineering a “Wood Warehouse”

For Graycor, which has built more than 30 projects for Amazon over two decades, the Elkhart job marked a step change in both design and execution. “It’s not a regular old tilt-up or steel delivery station,” said Jon Denbo, project executive for Graycor. “We replaced the precast concrete walls with three-ply cross-laminated timber panels and swapped as many structural members

as possible for glue-laminated beams and columns.”

The resulting facility eliminated a substantial amount of embodied carbon while maintaining full industrial functionality. The roof was built with a panelized wood decking system — a rarity in the Midwest. Because timber construction can be more sensitive to moisture, Denbo’s team developed a detailed mitigation plan, working closely with suppliers to sequence deliveries “just in time” and keep materials protected.

“The wood went up faster than we thought it would,” he said.

“We smashed our goals on install time while keeping the quality and tight tolerances the project required.”

Sustainability and Scale For Amazon, the Elkhart delivery station is not just a one-off demonstration — it’s a testbed for the company’s long-term decarbonization strategy. The project aligns with Amazon’s Climate Pledge commitment to reach net-zero carbon by 2040 and builds on its experience achieving Zero Carbon Certification at its 700,000-squarefoot MCI9 sortation center in Liberty, Missouri.

“We’re tracking multiple metrics to evaluate scalability, including total embodied carbon reduction, operational efficiency, biodiversity impacts, and cost,” Mallory explained.

“For mass timber specifically, we’re developing a standardized ‘kit of parts’ that can be applied across multiple building types.”

Local sourcing also played a role. Indiana-based firm Arborwood supplied some of the timber components, helping to tie sustainability goals to regional economic impact.

The facility will employ more than 200 people and includes employee-centered design features such as daylight-op-

timized lighting and low-emitting, bio-based interiors.

Overcoming Barriers

While the project demonstrates that large-scale timber can work in an industrial context, it also revealed barriers that need to be addressed for broader adoption. “Some jurisdictions don’t yet recognize mass timber as an approved building method at this scale,” Denbo noted. “In Elkhart, we had to secure a variance — but the city was excited about it.” Material sourcing and trade expertise remain challenges, particularly in regions where timber construction is new.

Graycor ultimately brought in specialized crews from the western U.S. to complete the panelized roof system.

Despite those hurdles, Denbo believes the model is ready to replicate. “If we can do it in northern Indiana, we can do it anywhere,” he said.

“Other clients are already asking about sustainable materials and methods like this.”

A Model for What’s Next

Amazon’s Climate Pledge Fund has invested in more than 20 companies developing lower-carbon building materials, including CarbonCure, Brimstone, and Electra.

Many of those technologies are already being deployed across Amazon sites — including DII5. “The data we collect here will guide how we scale sustainable solutions across our global network,” said Mallory.

The Elkhart project demonstrates that sustainability, speed, and structural performance can coexist — and that mass timber may be moving from niche architecture into the mainstream of logistics and manufacturing development.”

Reporting by Andy Greiner

Manhattan’s Old Ramps, NewLogistics

By Kathy Webster, Area Development Staff A century-old industrial building on Manhattan’s West Side is quietly redefining what “last mile” means in the urban core. Once home to Ford Motor Company and later DHL, the multi-story warehouse on 10th Avenue is coming back to market for the first time in decades — and it’s built for a kind of movement that cities suddenly need again.

Inside, a spiraling ramp system allows box trucks and delivery vans to drive up and down five floors — a rarity in New York and a feature that makes the building instantly relevant in an era of e-commerce congestion. “There really isn’t another industrial building in Manhattan that allows this kind of vertical access,” said Leslie Lanne, Vice Chair at JLL, who specializes in institutional Landlord and Tenant representation in the Northeast Region. “The design solves a problem we’re just starting to face — how to move vehicles off the street while keeping them close to the customer.”

That problem is growing across major cities as e-commerce accelerates and space remains scarce.

Manhattan’s total industrial footprint is about 130 million square feet, but less than ten percent qualifies as modern Class A product. Only five million square feet of new logistics space has been delivered across New York City in the last eight years. Much of the rest is aging stock — midcentury warehouses without loading docks, staging space, or capacity for EV fleets.

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But timing matters. Nationwide, logistics demand has softened since its pandemic peak, leaving speculative projects from Chicago to Seattle hunting for tenants.

Chicago’s 1.2 million-squarefoot multistory warehouse on West Division Street, once hailed as a prototype for urban logistics, still sits largely vacant. Analysts at NAIOP note that many multilevel projects face operational hurdles — from tight ramp grades to difficult vehicle queuing — that complicate their promise.

Lanne said New York is different. “This market is structurally undersupplied,” she said. “If we want to get delivery vehicles out of bike lanes and off sidewalks, we need more buildings that can load and stage fleets internally.”

Potential tenants range from parcel carriers to food distributors, art storage firms, and event logistics providers. The building’s freight elevators, large enough to carry cars, offer flexibility few urban sites can match.

For corporate real estate executives watching urban logistics evolve, the 10th Avenue project captures the paradox of modern industrial space: what was once obsolete may now be indispensable. A design from Manhattan’s automotive past could help solve the delivery gridlock of its future.

Reporting by Andy Greiner

Fort Worth’s Front Door for Investment

By Andy Greiner, Editor Manufacturers and corporate real estate executives often

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talk about speed to market and clarity of process as deciding factors in site selection.

Fort Worth is testing what happens when a city reorganizes itself around those principles.

In 2023, the city and its business community created the Fort Worth Economic Development Partnership (EDP), a private, investor-led organization that now handles the front line of business recruitment and corporate outreach. At this year’s annual meeting, Mayor Mattie Parker summed up the impact: “Since the founding of the EDP, the Fort Worth region has secured nearly ten billion dollars in new capital investment and generated more than eleven thousand new excellent jobs.”

Those projects span advanced manufacturing, aerospace, mobility, and logistics—industries where project execution depends on workforce depth, energy access, and logistics capacity. Siemens’ $190 million production facility in south Fort Worth, Bell’s $600 million expansion tied to the Army’s next-generation aircraft, and Wistron’s two facilities totaling $761 million at Alliance all point to an environment where infrastructure and permitting can support complex, capital-intensive operations.

American Airlines’ roughly $4 billion Terminal F expansion at DFW International Airport reinforces the logistics base that regional manufacturers rely on for both freight and executive travel.

For companies evaluating major investments, testimonials like that of Jim Litinsky, CEO of MP Materials, carry weight. His company, which recently located a magnet manufacturing facility in Fort Worth, described the experience this way: “It’s a risk to

pick a new place and build a business, and Fort Worth has delivered beyond our expectations. This is a place that not only wanted our business but believed in it.”

Parker called the EDP’s creation a cultural as well as structural change: “We are no longer simply responding and playing defense. We are creating opportunity.” The EDP now leads outbound targeting, coordinates with the city’s infrastructure and permitting teams, and serves as a single point of contact through the decision process.

Fort Worth’s approach offers a practical takeaway: governance design itself can be a competitive factor. By consolidating outreach, funding it privately, and aligning it with mayoral leadership, the city has reduced friction for capital-intensive projects that demand certainty, utilities, and speed. In a landscape crowded with similar-sounding markets, Fort Worth’s model stands out for treating economic development the way its prospects do—like a business process built to deliver.

Hide and Seek Data Centers

By Kimberly Graulein, Area Development Staff

As artificial intelligence devours electricity and real estate, the modern data center has gone underground, underwater — and soon, maybe, off-planet. Engineers are playing a high-stakes game of hide-and-seek with the world’s most power-hungry buildings.

Above the Clouds

Google’s Project Suncatcher and Jeff Bezos’s vision of “gigawatt-scale data centers in space” imagine satellite

constellations powered by continuous sunlight and linked via optical communications. By mid-2030s, orbital compute could approach terrestrial costs per kilowattyear — at least on paper. The engineering hurdles, from radiation shielding to launch economics, are enormous, but the ambition signals how far the industry is thinking.

Below the Sea

When Microsoft’s Project Natick submerged a sealed server pod off Scotland’s coast, it ran for two years with one-eighth the failure rate of land-based peers.

The cold, consistent seawater handled the cooling for free. Follow-ups in Asia are testing larger, longer deployments. Yet saltwater and maintenance logistics remain obstacles; each capsule must be self-contained, retrieved, and rebuilt after its mission cycle ends.

Beneath the Surface

In Helsinki, an underground facility carved into bedrock now heats thousands of homes with its waste energy.

Similar ideas are surfacing in the U.S., where developers are converting defunct mines and bunkers into secure, naturally cool campuses sometimes turning an environmental liability into a civic asset.

These experiments share a motive: energy. Each approach seeks stable, cheap, and sustainable power in an era when land, labor, and grid capacity are tightening.

Underground centers recycle waste heat. Underwater pods exploit natural cooling. Orbit promises limitless solar input.

For site-selection professionals, the message is clear —tomorrow’s “prime site” may not be a plot of land at all but an ecosystem of infrastructurestretching from seabed to stratosphere.

For now, traditional campuses still dominate. But the definition of location is expandingfast, and those tracking where data lives will soon be looking in some very unfamiliar directions.

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By Kim Area De

Energy

Why Utilities Are Becoming Developers

The energy transition is reshaping real estate strategy as utilities and corporations compete for control of generation assets

By Puanani Noorwood, Los Angeles Office Managing Partner at BCLP

T

he U.S. energy sector is undergoing a historic transformation, driven by soaring electricity demand from new technologies, ambitious corporate sustainability goals, and major federal roadblocks. This has triggered a nationwide land rush, placing real property at the center of the energy transition conversation in the U.S. With the existing grid struggling to keep up with increasing power demands, utilities are aggressively shifting from passive energy procurement to direct real estate acquisition and development. For corporate leaders, understanding this new utility strategy is essential for strategic site selection and competitive positioning.

The Utility Shift to Real Estate and Development

Historically, regulated utilities often met renewable energy needs through long-term power purchase agreements, or PPAs, with independent producers. Today, utilities are increasingly pursuing direct asset ownership.

The primary driver of this shift is that it allows utilities to add the value of a power plant to their “rate base,” which is the value of property on which they are allowed to earn a specified rate of return for shareholders, as set by a public utility commission. Power purchased from others is merely a pass-through expense, offering no such return.

Direct ownership also gives utilities greater control to meet state and federal decarbonization mandates, improve grid reliability, and stabilize long-term prices. This allows them to capture the full project value, including energy, capacity payments, and renewable energy certificates. Consequently, utilities are now competing directly with power producers and commercial developers.

and permits, before transferring the “de-risked” asset to the utility upon completion. This model leverages developer agility while allowing the utility to add the final asset to its rate base. While this approach mitigates early-stage risk and benefits from specialized developer expertise, it often comes with a higher acquisition cost and requires complex negotiations, especially given current market conditions.

In contrast, entities in deregulated markets or those looking to avoid massive capital outlays continue to rely heavily on the flexibility of power purchase agreements. PPAs remain a common model where a utility or other large electricity consumer buys power from a project owned and operated by an independent power producer for a long term, typically 15–25 years. This allows the power purchaser to avoid all development and operational risk and requires no upfront capital, providing predictable energy costs. However, for a utility, this path forgoes the opportunity to expand its rate base, offers less operational control, and prevents it from directly monetizing tax incentives.

In the direct utility ownership, or “self-build,” model, the utility acts as its own developer, directly acquiring land and managing the entire project. This approach offers maximum control and rate base value but places all development, construction, and financial risk squarely on the utility and its ratepayers. While it maximizes shareholder return, this model can be slower and less efficient than private development.

A Comparative Analysis of Key Transaction Models

The decision to build, buy, or simply contract for power is a complex one, forcing utilities and developers to weigh the trade-offs between risk, control, capital investment, and speed. Various transaction model options exist because there is no one-size-fits-all solution; each structure allocates critical variables differently to suit a company’s specific financial situation, risk appetite, and strategic goals.

While no single model is universally preferred, regulated utilities are showing a distinct preference for structures that result in asset ownership — such as direct ownership or build-transfer agreements — because of the powerful incentive to grow their rate base. A buildtransfer agreement, or BTA, is a hybrid model where a developer handles the high-risk early stages of a project, such as obtaining site control 20

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A comprehensive lease agreement, negotiated with transparency, is the foundational document for a lasting relationship. This includes clearly defined compensation with escalator clauses, precise mapping of land use and access rights, and explicit reservation of the landowner’s rights on adjacent property. Proactive operational management, including a designated local point of contact and clearly delineated maintenance duties, can also be beneficial. Finally, planning for decommissioning from the start, with a detailed plan and financial guarantee for land restoration, builds crucial long-term trust.

A C-Suite Guide to Site Selection in the New Energy Paradigm Mitigating the Top Three Real Estate Legal Challenges

Whatever transactional model utilities choose, proactive risk management is essential for project survival. Energy projects are defined by massive upfront capital investment and long, complex development timelines where real estate is the most critical component. Failing to proactively manage land-related risks means that fatal flaws — such as an undiscovered title defect or community opposition — may only be discovered after millions of dollars have been spent. This reactive approach inevitably leads to crippling delays, explosive budget overruns, and, in a worst-case scenario, the complete abandonment of the project, reducing a promising asset into a substantial financial loss.

First, navigating the zoning and permitting gauntlet is often the most unpredictable part of development due to community opposition and complex regulations. Such opposition and complexity may be mitigated by early and transparent engagement with local officials and community leaders; however, early engagement can be more difficult with a BTA model, where a developer is in control during this phase, potentially leaving the acquiring utility to inherit landowner issues.

Success depends on incorporating local zoning codes into initial site screening and utilizing state-level siting authorities where available to streamline approvals.

Second, securing necessary land control is paramount, as unforeseen issues can present fatal flaws to a project. Obtaining option agreements creates site control with minimal upfront capital while also providing a crucial window for due diligence before committing to a long-term agreement. It is also vital to obtain comprehensive land title surveys and proactively negotiate with existing mineral rights holders, a challenge particularly pronounced in states with a long history of oil and gas activity.

Third, navigating landowner relationships from negotiation to operation is critical. Unlike a one-time purchase, an energy project creates a long-term partnership, often spanning 20–40 years or more.

A failure to establish a clear and fair agreement at the outset can lead to persistent operational friction and ongoing community opposition.

Conflicts can arise over issues not clearly defined in the initial lease, such as maintenance, interference with farming activities, and access rights.

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For corporations planning energy-intensive facilities, the site selection playbook must evolve because the energy landscape itself continues to change focus. Power is no longer a simple commodity; it is now the primary gating factor for any major industrial development — especially as the race to build AI data centers increases demand for electricity.

Corporations that adapt their strategies to treat energy as a critical strategic asset can secure a powerful competitive advantage, enabling faster construction and more reliable operations. Failing to evolve risks being saddled with sites that cannot be powered on a viable timeline, leading to catastrophic project delays, stranded capital, and a loss of market position.

Power availability is now the primary factor determining a site’s viability. With grid capacity constrained and interconnection queues backlogged for years, the “time to power” can make or break a major investment. Site selection teams should perform deep diligence on a location’s energy readiness by analyzing the local utility’s integrated resource plan, investigating the regional grid operator’s interconnection queue, and understanding the utility’s preferred transaction models to predict its behavior.

This reality has given rise to the “Bring Your Own Power” imperative, where leading corporations develop on-site generation to ensure power reliability. This strategy requires much larger land parcels that can host both an industrial facility and a power plant, creating a new premium class of “energy-anchored” industrial real estate. Two recent examples highlight this shift. First, Amazon Web Services acquired a 1,200-acre data center campus in Pennsylvania directly connected to a 2.5 GW nuclear power plant, securing up to 960 MW of reliable, carbon-free power through a long-term PPA. Second, Microsoft, as part of its goal to eliminate diesel backup generators by 2030, successfully tested hydrogen fuel cells to power a row of data center servers for 48 consecutive hours, proving the viability of clean hydrogen for providing uninterrupted power.

As corporations navigate this new landscape, executives must integrate an energy-first mindset into their planning. This involves elevating energy to a core business strategy, embedding deep energy diligence at the outset of site selection, future-proofing real estate acquisitions by prioritizing larger sites, and proactively engaging with utilities as strategic partners to understand long-term infrastructure plans.

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First Person

James Walker CEO, Nano Nuclear Energy

The nuclear leader explains how small modular reactors could redefine energy reliability for data centers, manufacturing facilities, and the broader industrial landscape, if only we could figure out how to get enough reactor fuel to run them

Interview by Area Development Artificial-intelligence data centers and manufacturing campuses are driving unprecedented demand for reliable, zero-carbon power. James Walker, CEO of Nano Nuclear Energy, explains how his company is developing small modular and micro-reactor systems, rebuilding the domestic fuel-supply chain, and preparing to deliver commercial nuclear power by 2030.

Area Development: Let’s start with the basics. What is Nano Nuclear, and how did it begin?

James Walker: We started several years ago focused on very small microreactor systems—true off-grid units for island communities, mining projects, and military bases. We weren’t trying to compete with gas, coal, or large nuclear.

Around 2023, the tech industry suddenly became interested in nuclear because they realized that upgrading the national grid to meet data-center demand would cost trillions.

Companies like AWS and Sam Altman’s group Oklo began investing.

When USNC went bankrupt, we acquired its assets and much of its team, which gave us a larger reactor design suited to data-center power. Now we have two full-scale demonstration projects

planned—one at the University of Illinois and another at Chalk River in Canada—to license our system in both countries simultaneously.

You’re also tackling the fuel-supply problem, right?

Walker: Exactly. The U.S. leads in advanced reactor design, but our enrichment capability has atrophied.

We’re developing laser-enrichment and conversion facilities to produce uranium hexafluoride feedstock. It’s part of rebuilding a U.S. supply chain that can fuel the next generation of reactors.

Much of your growth is tied to data centers. Are they the main customers?

Walker: For now, yes. Data centers are the biggest early buyers. Microsoft even bought the old Three Mile Island site to secure nuclear power. Industrial plants and military bases are interested too, but the tech sector’s scale makes it the primary driver.

Pittsburgh is more of an exception. It doesn’t have as much traditional space activity, but that’s an opportunity. We’re tapping into the region’s strengths in AI and robotics to bring new technology to space.

How do micro-reactors fit alongside other emerging power solutions such as hydrogen or microgrids?

Walker: Microgrids are actually our best friend. They distribute our output in remote areas. Large-scale renewables paired with battery storage require huge tracts of land and still struggle with reliability. Nuclear offers the highest capacity factor of any power source— better than coal or gas—so it provides the consistent baseload that data centers need.

What’s a realistic timeline for getting one of these small reactors in service?

Walker: We’re drilling now on the site for the first U.S. micro-reactor. Construction begins in 2027, runs through 2029, and full licensing should come in 2030. Once licensed, we’ll mass-manufacture units as the fuel supply catches up. We’d rather under-promise than hype a date we can’t meet; our lawyers insist on realism.

What kinds of facilities will you need once commercialization begins?

Walker: The first will be a conversion facility, essentially a chemical plant that turns yellowcake into uranium hexafluoride—hundreds of acres and several hundred engineers and technicians. Our proposed enrichment plant could cover 500 acres and employ around 800 people.

We’ll partner with large fabricators like Hatch or PCL to mass-produce reactor vessels, then ship core

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components in ISO containers for on-site assembly. That takes roughly 40 to 50 weeks per reactor.

That’s fast compared to traditional nuclear.

Walker: Right—and once our reactor design is licensed, every identical unit after that is automatically licensed. We just verify the local ground and seismic conditions, then deploy. These advanced reactors can’t melt down and need no exclusion zone, so they can sit right beside a data center. That’s a completely new model for nuclear.

What about workforce? Is there enough nuclear talent out there to meet demand?

Walker: It’s tight. The middle generation of nuclear engineers disappeared when the industry went quiet. At our Illinois

site we planned to hire 50 people and found about 30. That’s why we partner directly with universities—the University of Tennessee for conversion technology and Illinois for hands-on training—so graduates can move straight into our projects.

Nuclear remains one of the most heavily regulated industries. How are you handling that?

Walker: Public perception and regulation are our biggest challenges.

Statistically, nuclear is the safest form of powerever developed—fewer deaths per gigawatt-hour than wind or solar—but it’s still intimidating. The new reactors eliminate the meltdown risk altogether.

Regulators are under pressure to streamline approvals. Financing makes up about 70 percent of a traditional plant’s total cost because of long licensing times. Reform is coming slowly,

but once a design proves safe, future deployments should move much faster.

Is there political support for this build-out?

Walker: Absolutely. It’s one of the few bipartisan issues left. The previous administration committed $8–9 billion to rebuild nuclear infrastructure, and the current one has issued executive orders to accelerate reactor construction and shorten licensing. Votes for nuclear in Congress pass with about 98 percent approval.

So by 2031, what does success look like for Nano Nuclear?

Walker: Licensed micro-reactors operating across North America, domestic fuel in production, and standardized units shipping in containers to data centers, military bases, and industrial sites. Clean, constant power—assembled in under a year. That’s where we’re headed.

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Warehousing

Tariff Shockwaves Hit the Industrial Sector

Weak sentiment and slowing e-commerce are shifting warehouse vacancy rates across major U.S. markets

By Ermengarde Jabir PhD, Director of Economic Research, Moody’s

T

he effective tariff rate as of the first half of 2025 is currently approximately four times higher compared to the historical quarterly average during the 30-year period from 1995–2024.

Countries across APEC, a region that contributes over two-thirds of U.S. imports annually, face high tariff rates despite negotiated trade deals that are already in place. For example, countries like Brunei and Singapore, with no trade deals in place, face a 25 percent rate (reciprocal for the former and secondary for the latter). South Korea, despite having a trade deal, still faces a 15 percent tariff rate.

The effects of such trade policy on final goods in retail are quite direct: higher prices cause consumers to pull back spending, dampening possibly not just short-term demand but also long-term demand depending on the duration of current trade policy. This dynamic could cause brick-and-mortar retailers to rethink their space needs if they believe depressed demand will last for an extended period of time. The effects on industrial commercial real estate, however, are perhaps less obvious. Nevertheless, the passthrough mechanism between goods demand and space demand for these two property types is now increasingly similar. Even with trade deals and exemptions, industrial properties in the U.S. have felt the effects.Generally speaking, broad

macroeconomic headwinds have led to sharp increases in warehouse and distribution vacancies, plateauing rent growth, and net negative absorption in many markets. Tariffs have only added to the strain, as warehouse and distribution space demand depends on storage and delivery demand for both intermediate goods and final goods. While causation related to tariffs is too strong of a conclusion, there is clear correlation. Some West Coast markets have experienced performance deterioration that significantly exceeds that of the national average. For example, while the U.S. has only seen a 50-basis-point increase in the warehouse and distribution vacancy rate year-over-year (see Figure 1), Los Angeles and Oakland–East Bay both exceeded 100-basis-point increases in the same metric even though inventory growth for both metros was below that of the national figure. However, other markets (e.g., San Diego and San Francisco) are on par or even show lower year-over-year vacancy rates, indicating a tightening market with sufficiently robust demand even with inventory growth that exceeds the national number, as is the case for San Diego. This pattern extends beyond the West Coast. Port cities along the East Coast whose daily tonnage is often skewed toward international cargo, like Philadelphia, are also feeling the impact.

Still, tariffs are only one factor behind weakening warehouse and distribution performance. In many cases, higher vacancy rates, and the accompanying weakness in rent growth, are more directly attributable to the amount of speculative square footage that has come online, despite a general slowdown in the new-supply pipeline nationally. Norfolk/ Hampton Roads and Savannah are two prime examples as both markets have experienced outsized inventory growth year-over-year.

Two major headwinds for warehouse and distribution demand growth persist, both tied to final consumer goods spending: weak consumer

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Warehousing

insulated, data from the second half of 2025 is starting to indicate a softening due to this intermingling of uses and blurring of lines, given the agglomeration of the aforementioned macroeconomic factors.

Turning to activity in the capital markets for the warehouse and distribution subsector, transaction volume has picked up year-over-year in the West, both by nominal dollar amount and property count. While activity remains more muted than years past, transaction volume is up 17 percent from the third quarter of 2024 to the third quarter of 2025 and the median transaction cap rate is down 60 basis points over the same time period even though the 10-year Treasury yield increased by 30 basis points. The other regions of the country have not been as lucky, with either declining transaction volumes or increasing cap rates, or both. However, the South Atlantic, the only other region to experience an increase in transaction volume over the aforementioned period, saw median transaction cap rates increase just 25 basis points, on par with the 10-year Treasury yield, meaning that the risk premium over the risk-free rate remained unchanged.

Although demand softening has led to a sharp deceleration in the amount of square footage completing over the past year, as well as square footage under construction, investor appetite for existing properties remains strong. Sizeable industrial portfolios are trading across the country, with particular investor interest in newer construction that offers features like higher ceiling clearance and advanced automation capabilities. Despite ongoing concerns regarding valuations due to the current interest-rate and Treasury-yield environment, in the wake of slowing, and in some pockets, stagnant, net operating income growth, industrial portfolios are finding access to capital with loans issued for new purchases and refinancing.

This resilience is largely due to minimal borrower distress across the industrial sector. Delinquency rates remain low (the lowest across all of the core property types) — just 1.5 percent as of September 2025 — indicating temporary headwinds rather than a long-term downward trend. sentiment over elevated inflation expectations, and the interaction between interest rates and borrowing costs, which has contributed to the plateauing of e-commerce growth.

The University of Michigan Index of Consumer Sentiment shows rapidly declining confidence. The November 2025 reading stands at 50.3 — just shy of the record low of 50.0 in July 2022 — as consumers worry about food and goods prices this holiday season. Much of that concern relates to inflation that has yet to meaningfully reach the policy target. Meanwhile, over the past four quarters of data, from the third quarter of 2024 to the second quarter of 2025, e-commerce’s share of retail sales has held steady, just above 16 percent, oscillating between 16.1 percent and 16.3 percent. The record high of 16.3 percent, first reached in the second quarter of 2020, was only matched again in the second quarter of 2025.

Flex and research and development (R&D) properties have been a notable exception to such deteriorating performance. As their name implies, they provide more flexibility. From retail to office space to warehousing for smaller enterprises, flex space provides a more dynamic environment and a smaller footprint for businesses to scale up or down with ease. Thus, although this industrial subtype has been far more

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Site Selection

The Permit Puzzle and the Path to Groundbreaking

Why the most successful projects build permitting strategy into their earliest site and construction decisions

By Lauren Berry, Director, Location Analysis and Incentives at Maxis Advisors and Andrew Sineni, Senior Vice President, User Development Services at Foundry Commercial

I

n our current economic landscape marked by tariff volatility, global supply chain disruptions, and regulatory uncertainty, the challenges for new greenfield development projects are more complex than ever. For many projects, speed to market is a critical factor, and permitting can be an unforeseen obstacle. Lack of planning or understanding of permitting timelines can impact product deliveries and have significant cost implications.

To even experienced developers and project managers, permitting can begin to feel broken due to a number of key factors. First, in markets experiencing significant growth — whether from residential or commercial development, or a mix of both — backlogs in review and approval times can result from staffing shortages and the limited ability to process permitting using third-party resources. Further, permitting is an inherently local process, with most cities, counties, states, and state agencies having unique methods and standards that applicants must navigate.

Finally, for many permitting processes, there is the potential for political or community opposition during the public input process, whether for a local rezoning or a federal air permit. We’ve seen an increase in public opposition to projects of all sizes in recent years, from distribution centers to OEM mega-projects like Rivian. With local opposition, normally routine permits can eventually result in delays and even messy litigation.

When evaluating permitting considerations for any type of greenfield development, there are a number of factors that project teams should understand and address in their site location and construction plans.

First, in nearly every project, multiple permitting agencies and jurisdictions are required. For instance, at one site, road improvements may be permitted through a city or county, while at another, the same scope of improvements will be permitted by a state department of transportation. These varying jurisdictions may also require different application materials and studies to be submitted, which can also cause delays. For example, in some states, traffic count studies for road improvements can only be completed when school is in session. During site evaluations, it is critical to determine the jurisdiction and application requirements early so adequate time is planned for preparation.

Many permitting processes are handled sequentially, so a delay in one item can cause a cascading effect in the application and approval of other, even unrelated, items.

The permitting process can also uncover hidden risks that may not have surfaced during due diligence. For example, if a stormwater permit review takes longer than expected, it can delay site plan approval, which in turn holds up building permits even though they involve separate departments.

During competitive site selection projects, “fast-track permitting” is often offered as a key incentive and can be attractive for fast-moving

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deals. However, it’s important to understand the true meaning and limitations of “fast track” depending on the jurisdiction before assessing its value. Does “fast track” include both local and state approvals?

If not, which agencies are involved and which are not? Are there any federal permitting items, such as jurisdictional wetland permitting or Title V air permitting, that will be required by the project? Is “fast track” tied to a specific accelerated review timeline, or does it simply mean that permit applications are moved to the “top of the stack” of open applications? Companies should ask for specific approval timelines for each permit required and case studies of successful “fast-track” schedules for similar projects.

How can executives with time-sensitive projects ensure the permitting process doesn’t become a drag on the project or an unexpected deal killer? Choosing the right support team is essential to ensuring the success of the project in meeting its goals. Using a site selection firm with an integrated development team can address critical location and development factors in parallel, reducing project risk and saving time and cost on the final build.

An experienced site selection firm can include state and local permitting timelines as a key search criterion during the early project stages. During the site selection process, companies have the most leverage to negotiate meaningful permitting support, and experienced consultants can help create a permitting plan by working through the scope of the broader economic development process.

Such ongoing support can include coordination of permitting jurisdictions for pre-project evaluations, tracking of permitting milestones to real estate and incentives milestones, and negotiation of meaningful “fast-track” benefits for the project.

Most importantly, by addressing permitting during the site selection process, consultants can help to engage communities and public

Q4 2025

F - Permitting Puzzle by Lauren Berry.inddc 29

officials proactively to anticipate and resolve potential permitting issues before they cause delays. For instance, when evaluating a site for a new distribution center, an experienced developer will work with consultants to meet early with county planners and nearby property owners to discuss traffic and drainage concerns. By doing so before submitting formal applications, the team can incorporate feedback into the design — avoiding opposition and months of delay during the public hearing phase. Similarly, on the technical side, an experienced development team brings a different perspective to the site selection process and is prepared to build out a realistic work plan and schedule for both permitting and development to meet company needs. An experienced development team brings established relationships with permitting agencies, engineering and architectural firms, and construction partners so that all parties are coordinated for the project’s success.

Experienced developers can also help to structure phased permitting and development timelines so that due diligence, permitting review, and site work can proceed in a seamless and straightforward process. For example, the developer might secure early grading and utility permits while the full building permit is still under review, allowing site work to begin without delay. This phased approach keeps construction moving forward and aligns key milestones so that infrastructure, vertical construction, and tenant improvements flow smoothly together.

Finally, experienced developers can ensure that any permitting and entitlement risks are fully understood early, and deal terms can be negotiated to protect the company. For instance, the developer discovering that a site requires a conditional use permit for truck parking might negotiate conditional closing until approvals are secured. This approach limits financial exposure while ensuring that entitlement risks are addressed before the company is fully committed to the deal In summary, permitting remains a complex and project-specific issue for companies to take seriously when planning for a new greenfield project. With the right site selection and development partner in place, companies can have a coordinated partner helping them to not only select the best location for the project but also anticipate risks and build realistic timelines to keep critical projects on track for success.

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Leading Metro Locations

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Leading

Metro Locations 2025

Smaller Markets, Stronger Momentum

By Kimberly Graulein, Area Development Staff

E

ach year, Area Development partners with Chmura Economics & Analytics to evaluate the performance of U.S. metropolitan areas based on the fundamentals that matter most to business expansion: workforce, economic strength, and adaptability. Using Chmura’s data-driven model

— which equally weights Prime Workforce and Economic Strength — the Leading Metro Locations rankings offer a snapshot of where growth, talent, and opportunity intersect.

The 2025 results confirm a national realignment in progress. Smaller and mid-size markets are outperforming their larger counterparts, buoyed by agile workforces, rising investment, and livability advantages that big metros increasingly struggle to match.

“Scale alone isn’t what drives competitiveness anymore,” says Chris Chmura, founder and CEO of Chmura Economics & Analytics. “The regions that perform best are the ones optimizing for their workforce and quality of place — not just their population size.”

National Trends: A Shift in the Map of Competitiveness The Mountain and Southwest divisions once again lead the nation in total scores, followed closely by portions of the South Atlantic and Midwest. According to Chmura’s analysis, those gains reflect a combination of population inflows, affordable cost structures, and strong prime-age workforce participation.

Q4 2025

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Leading Metro Locations

“While we don’t directly track migration,” Chmura explains, “you can see its effects in the data — higher workforce participation, rising wages, and strong business formation across the Mountain West and Sun Belt.”

Texas stands out as the top-performing state by breadth, with 68 regions represented across all categories. Other consistent leaders include Utah, Georgia, and Indiana — states that have invested heavily in workforce systems and logistics infrastructure.

The biggest insight, however, lies in the data’s variability. Smaller and mid-size metros show performance spreads exceeding 50 points, while large metros cluster within roughly 25. That pattern reveals a U.S. economy where dynamism and differentiation increasingly belong to smaller places.

“The resurgence of smaller cities isn’t accidental — it’s driven by a new balance of affordability, access to amenities, connectivity, and opportunity. These communities, often on the fringes of major metros, are redefining what it means to live well and work smart. For younger tech workers in particular, they represent the promise of a vibrant career and a higher quality of life without the high-cost trade-offs of big-city living,” said Courtland Robinson, Director of Business Developmentat at Brasfield & Gorrie.

Prime Workforce: Small Places, Strong Talent The Prime Workforce rankings tell a different story than overall competitiveness. While Texas and the Southeast dominate the Economic Strength lists, many of this year’s top performers for workforce quality are smaller, inland communities across the Mountain West and Pacific Northwest.

Laramie, WY; Vernal, UT; and Helena, MT lead the 2025 list, each posting near-perfect scores thanks to high concentrations of STEM employment, wage growth, and strong participation among prime-age workers. These regions prove that workforce quality doesn’t scale linearly with population. Many of the best-performing labor markets are those that have invested heavily in education pipelines, upskilling programs, and automation readiness despite their smaller size.

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TENNESSEE MEANS BUSINESS.

Tennessee ranks among the best in the nation for getting business done. With ready-to-build sites, an abundance of reliable energy and a highly skilled workforce, Tennessee makes it easy for businesses to grow and thrive.

Discover what’s possible at TNECD.COM.

#2 Site Readiness Programs #3 Energy Availability #4 Cost of Doing Business #5 Workforce Training Programs (Area Development 2025)

Leading Metro Locations

“As labor becomes scarce and land prices rise in major metros, the smart move isn’t necessarily going bigger — it’s going smaller and smarter. Companies are using micromarkets is proximity to major markets to create a regional spoke-and-hub networks, leveraging lower costs, higher incentives, and proximity without premium pricing,” said Joe Dunlap, Chief Supply Chain Officer for Legacy Investing

Together, these findings highlight how the next phase of competitiveness won’t be measured only by headcount — but by how ready that workforce is for tomorrow’s jobs.

Workforce Strength: Where Jobs Meet Momentum If the Prime Workforce category captures the quality of labor, Workforce Strength reflects how that talent translates into sustained growth. This measure draws from job creation, unemployment trends, and output from advanced industries — indicators that reveal whether a region’s economy is keeping pace with its people.The 2025 data show that large and mid-sized 34

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Central to Innovation.

Central to Generation.

Central to It All. From utility-scale solar and battery storage to community and distributedenergy systems, the Central SC Region drives the future of energy.

Anchored by a federal energy-tech hub, researchers and ready sites, the region supports manufacturers, innovators and advanced-energy solutions.

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Mid-Carolina Commerce Park I

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How Georgia Power’s Proprietary Tools and Data Analytics Are Reshaping Site Selection in Georgia

By Georgia Power

I

n today’s fast-moving business environment, site decisions increasingly hinge on the ability to turn complex data into actionable insights. Companies demand sites that can quickly meet operational, workforce, and infrastructure needs.

For Georgia Power Economic Development’s Strategic Solutions group, data has become the most powerful differentiator.

Combining proprietary analytics with decades of on-the-ground experience, the team is helping companies locate and evaluate sites with greater precision than ever before, often reducing the traditional decision timeline.

The Evolution of Data-Driven Site Selection

Site selection has long married hard data with deep local knowledge. But as competition for industrial investment intensifies, analytics now play a central role in evaluating risk, workforce alignment, and long-term sustainability. Georgia Power’s Strategic Solutions group brings those elements together. Experts in GIS, economics, engineering, and demographics produce studies on labor availability, commuting patterns, site readiness, and utility infrastructure. These insights guide corporate location strategies.

“Our goal is to help companies make decisions based on verified data, not assumptions,” said Georgia Power Strategic Solutions Director Jennifer Zeller.

Proprietary Tools Built for Precision

Georgia Power’s in-house platforms give site selectors and consultants the tools they need to analyze locations from every angle. The Site Selector tool allows users to compare sites and buildings across Georgia using real-time, validated data. Every property is vetted before posting, ensuring accuracy in utility availability, zoning, and infrastructure access.

Behind the interface, intelligence layers demographic data, workforce analytics, and utility mapping. This enables companies to assess how each location aligns with business goals and make faster, more confident decisions.

model allows Georgia Power to pinpoint high-potential properties before they appear on a client’s shortlist.

“When we present a site to a company, that due diligence has already been done,” said Zeller.

Vetted Data for a Faster Path to Market

For companies making multimillion-dollar location decisions, speed to market is often as important as cost or workforce.

Georgia Power’s approach streamlines every step of the process. Each site in its system has been reviewed for infrastructure, utility readiness, and development feasibility. That pre-vetting eliminates uncertainty and helps clients move from evaluation to construction more efficiently.

Driving Community Readiness Across Georgia

Georgia Power’s data-driven process also strengthens the ecosystem companies rely on. SAM™ assessments help local partners target investments that raise a site’s readiness level. By highlighting gaps — from water capacity to access roads — the Strategic Solutions team supports improvements that translate directly into reduced risk for corporate decision-makers.

Data Delivered with Expertise

The best decisions are made when data and experience align.

Georgia Power’s economic development team brings together technology, talent, and trusted relationships so companies entering Georgia have the information needed to make decisions with confidence.

A Proven Partner in Economic Development

From major manufacturing projects to emerging technology hubs, Georgia Power’s analytics have informed some of the state’s most significant decisions. As Georgia continues to lead in business growth and infrastructure investment, its economic development team remains focused on using data to drive opportunity for companies and communities alike.

SAM™: A Smarter Approach to Site Identification

Rather than waiting for RFIs, Georgia Power uses its proprietary Site Assessment Matrix (SAM™) to proactively identify and rank potential industrial sites. SAM™ leverages GIS analysis, infrastructure modeling, and field verification to evaluate access to power, gas, water, and sewer systems, proximity to transportation, workforce accessibility, environmental factors, and community engagement.

Each site is ranked on weighted criteria, creating a clear snapshot of development viability. SAM™ also incorporates local insight from Georgia Power’s regional managers, ensuring every assessment reflects real-world conditions. That hybrid

This article was written by Georgia Power and reviewed by Area Development.

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Where dreams become reality.

Turning vision into value takes more than ambition—it takes insight.

Georgia Power’s team of experts combines decades of experience with proprietary site selection tools that help build dreams and reveal new opportunities. We partner with the state and our communities on everything from data-driven labor analytics and infrastructure mapping to custom site readiness assessments, helping companies find the right location to bring their bold ideas to life.

Start building your dream at selectgeorgia.com. ©2025 Georgia Power. All rights reserved.

Leading Metro Locations

metros are driving this year’s gains in economic performance, particularly across the Southwest and Mountain divisions.

Las Vegas–Henderson–North Las Vegas, NV; Indianapolis–Carmel–Greenwood, IN; and Laredo, TX stand out among the top performers for Economic Strength — combining workforce expansion with rising wages and diverse industrial portfolios.

These regions balance strong fundamentals with agility. Las Vegas has leveraged diversification beyond tourism; Indianapolis has deepened its advanced manufacturing and logistics base; and Laredo continues to capitalize on its role as a critical node in North American supply chains.

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“Arkansas can do something big on a national and international scale.”

Matt Bell, President and CEO Origami Sake, Hot Springs

To learn more about how businesses are growing in Arkansas, visit ArkansasEDC.com.

Arkansas Economic Development Commission

Leading Metro Locations

“Smaller regions like Laramie, Vernal, and LaGrange are showing that workforce readiness is less about scale and more about alignment. They’re aligning education, economic development, and industry around targeted skills—especially in automation and advanced manufacturing—which makes them far more adaptive to change. Larger markets can learn from this by prioritizing focused talent pipelines over broad labor pools and by building ecosystems where employers, educators, and community leaders co-invest in future-ready skills” Dunlap said.

Together, the Prime Workforce and Workforce Strength rankings tell a single story: competitiveness now hinges on how quickly communities can translate skills into sustained economic impact.

Major Metros: Scale Meets Saturation America’s biggest metros remain economic anchors — but their performance is flattening. When population and infrastructure reach a certain threshold, growth changes character.

Las Vegas–Henderson–North Las Vegas leads the group with a total score of 68.6, powered by diversification into logistics, clean energy, and advanced manufacturing. Indianapolis–Carmel– Greenwood, IN follows closely, benefiting from its balanced cost structure and deep industrial supply chain.

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Dallas

Birmingham

MS

Charleston

AL

Jackson

TX

LA

SC

Atlanta

GA

Montgomery Mobile

Houston New Orleans

TALLAHASSEE

Jacksonville

Panama City

Tampa

500 MILES

AR

NC

TN

Memphis

S

Little Rock

300 MILE

OK

FL Orlando

Miami

A Leading Location for Growth and Talent

Area Development’s 2025 Leading Locations Report ranks Tallahassee, Florida among the nation’s best performing metro areas for economic strength and workforce excellence.

WHERE BUSINESS MEETS TALENT

OPPORTUNITY STARTS HERE

With a highly educated workforce, strong innovation assets, and strategic access to the Southeast and beyond, Tallahassee-Leon County offers the competitive advantages companies need to expand and thrive.

Whether you are looking to grow, relocate or start your company in Tallahassee-Leon County, the Office of Economic Vitality (OEV) provides concierge services such as site location, talent solutions, financial guidance, and technical assistance. Find your competitive advantage here!

Positioned at the crossroads of government, education, and enterprise, Florida’s Capital Community delivers access, affordability, and opportunity—making it a smart choice for your venture.

Leading Metro Locations

new middle class of U.S. competitiveness — large enough to support industry diversity, yet agile enough to adapt quickly.

Laredo, TX tops this class with a total score of 75.3, followed

by Brownsville–Harlingen, TX and McAllen–Edinburg–Mission, TX, each thriving as critical links in the North American logistics chain. These border metros are capitalizing on nearshoring trends and U.S.–Mexico trade corridors, with strong infrastructure investments reinforcing their rise.

In the Mountain West, Salt Lake City–Murray, UT and Reno, NV combine affordability and workforce participation to attract tech and clean-energy investments. Olympia–Lacey–Tumwater, WA demonstrates the Pacific Northwest’s unique blend of government stability and innovation capacity, while Lafayette– West Lafayette, IN leverages Purdue University’s research base to sustain high workforce alignment and productivity.

“Middle-market metros are where scale and specialization In the South Atlantic, Miami–Miami Beach–Kendall, FL

meet,” says Chmura. “They’re big enough to build sophisticated

continues to rise as a regional financial and logistics hub,

economies but small enough to pivot — and they’re finding their

while West Palm Beach–Boca Raton–Delray Beach, FL

stride where larger metros are constrained by costs.”

reflects Florida’s overall momentum in post-pandemic

“Smaller and mid-sized communities are gaining momen-

relocations.

tum in industrial development thanks to lower operating costs,

Meanwhile, New York–Jersey City–White Plains, NY–

efficient permitting, and available infrastructure,” said Courtney

NJ; Houston–The Woodlands, TX; and Los Angeles–

Dunbar, Director of Site Selection at Burns & McDonnell.

Long Beach–Glendale, CA remain global powerhouses

“They’re finding success with right-sized projects that bring sus-

— but their competitiveness now depends more on

tainable jobs and investment without overwhelming local systems.

efficiency and talent quality than on raw scale.

The key is smart growth — planning infrastructure upgrades,

“Large metros are still where the capital is,” says Chmura,

preparing future sites, and aligning industry attraction with the

“but they’ve reached a point of equilibrium. Their next

community’s long-term capacity and character.”

gains will come from improving efficiency, innovation, and livability — not just expansion.”

“The data you sent seems to confirm our experience that companies are: one, value-investing — meaning that they are trying to identify the next Austin or Columbus; and two, looking further afield to try to identify communities with unique attributes for their particular project, e.g., power or skill set. With so much data publicly available, site selectors can create algorithms, cast a broader net, and efficiently analyze the data haul,” said Greg Burkart, Principal, Site Selection Services at Walbridge.

Medium Markets: The Expanding Middle The combined Medium and Medium-Large category highlights a diverse set of metros that have emerged as the 42

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Leading Metro Locations

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Q4 2025

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Leading Metro Locations

Small Markets: Workforce-Driven Success Among smaller metros — typically between 50,000 and 150,000 people — workforce quality remains the defining differentiator. These regions thrive where local

Methodology: How the Rankings Were Calculated

partnerships between employers, educators, and governments have created customized talent pipelines.

Hobbs, NM, this year’s top small market, illus-

Chmura ranked 949 U.S. metropolitan and micropolitan areas using 24 economic and workforce indicatorsdrawn

trates that dynamic. Its energy legacy is evolving into a

from eight data sets maintained by the U.S. Bureau of Labor

diversified economy supported by renewable energy and

Statistics, the U.S. Census Bureau, and JobsEQ® by Chmura

advanced manufacturing investments. LaGrange, GA is

Economics & Analytics.

similarly leveraging its location along the I-85 corridor to

Each indicator included one-, three-, and five-year

grow its manufacturing and logistics base, while She-

change measures to balance short-term shifts with long-

boygan, WI continues to excel through a combination of

term trends.

skilled-trades education and industrial retention.

Regions earned a numerical ranking for each indicator,

Carson City, NV, supported by state government

from 1 (best) to 949 (lowest). Those scores were combined

and spillover from the Reno–Tahoe corridor, reflects how

into a Total Score and Overall Ranking, with three-year

policy stability can underpin economic growth. Mean-

change indicators carrying the most weight to reflect post-

while, Roswell, NM is cultivating a new identity around

pandemic performance.

regional logistics and light manufacturing, distancing itself from its cyclical energy past.

“Smaller metros are closing the gap by pairing lower

Composite rankings were also produced in two categories — Prime Workforce and Economic Strength — each derived from select subsets of indicators:

costs and faster development timelines with targeted in-

• Prime Workforce measures labor quality and readiness,

frastructure and workforce investments,” said Gregg Healy,

tracking changes in STEM employment, average wages,

executive vice president and head of Savills Industrial Ser-

and the share of residents in their prime working years

vices. “As companies seek both affordability and efficiency,

(ages 25–54).

these markets’ ability to offer accessible labor, multimodal

• Economic Strength evaluates a region’s business perfor-

connectivity, and a strong quality of life has become a

mance, including job creation, unemployment rates, and

powerful equalizer.”

growth in advanced industries.

To make comparisons meaningful, regions were grouped by both population size (Micro through ExtraLarge) and geographic division (nine U.S. Census regions).

Area Development chose to filter out the Micro locations for this exercise and focused on 4 categories: Small, Medium, Large, and Mega (a combination of Large and Extra Large cities by population).

Research compiled by Patrick Clapp of Chmura Economics & Analytics in collaboration with the Area Development Research Desk.

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WE DON’T DO IT BY OURSELVES IN

OPELIKA, ALABAMA AREA DEVELOPMENT’S LEADING LOCATIONS REPORT RECOGNIZES OPELIKA

3 OVERALL MSA IN THE SOUTH

#

3 ECONOMIC STRENGTH IN THE SOUTH

#

15 NATIONWIDE MEDIUM-SIZED METROS

#

Scan to learn more about Opelika.

We’re proud to be recognized for our momentum. But, we know it’s not just about us. It’s about the powerful partnerships that fuel our growth.

Together, we’re building a region where business thrives, talent grows, and opportunity is shared. We don’t do it by ourselves in Opelika.

334.705.5116 • John Sweatman, Director • jsweatman@opelika-al.gov • chooseopelika.com

2025 Area Development Leading Locations.indd 1

11/10/25 2:43 PM

Leading Metro Locations

Regional Dynamics: Southwest and Mountain Strength

advantages in 2026. One of the strongest predictors will be the

The Southwest and Mountain divisions again anchor

tion patterns of younger workers. Regions that pair job growth

the nation’s growth story. Both regions score roughly ten

with attainable housing — not just market-rate apartments but

points above the national median in total competitiveness,

starter homes, infill redevelopment, and mixed-income plan-

reflecting broad-based gains in workforce participation,

ning — are proving dramatically more resilient. The 2025 dataset

wage growth, and industrial diversification.

shows that smaller metros willing to intervene early, such as Ver-

Population inflows from California and the Midwest

continued interplay between housing affordability and the migra-

nal, Utah, are capturing workforce share at a pace that outstrips

have reinforced their labor supply, while infrastructure

peers three to five times their size. Expect more communities to

upgrades — particularly along the I-10, I-35, and I-40

follow this approach, and expect the gap to widen between places

corridors — continue to support manufacturing, logistics,

that treat housing as economic infrastructure and those that ap-

and clean-energy growth.

proach it as a standalone policy silo.

“The locations rising to the top are those that have

Infrastructure resilience will also carry more weight as site

fostered a strong sense of place in their communities and

selectors bake longer planning cycles into their models. This

created a sense of belonging. They are also heralding suc-

means more scrutiny on multimodal freight corridors, last-mile

cess stories of local industry both externally and internally,

congestion, and the reliability of regional water and power

to prospect companies and local talent alike. Recent gradu-

systems. Broadband quality — once treated as a baseline require-

ates who perceive that strong sense of community are

ment — is becoming a differentiator again as manufacturers and

more likely to stay local and outside talent is more willing

logistics operators depend more heavily on real-time data, digital

to relocate if it’s a livable environment whose trajectory is

twins, and remote-operations capabilities. Regions that can show

positive,” said Ford Graham, Partnerat McGuireWoods

consistent uptime, strong redundancy, and clear plans for grid

Consulting LLC

modernization will rise. Those with aging substations, constrained

What to Watch in 2026 The next edition of the rankings is already taking shape,

transmission, or fragmented water governance will struggle to keep pace.

Another factor to watch is the adoption curve for work-

and early signals from Chmura’s labor, industry, and demo-

force-tech tools, particularly the integration of AI-assisted

graphic models point toward a reshuffling of competitive

training, simulation labs, and credentialing platforms. Com-

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munity colleges and workforce agencies are beginning

present unified permitting, synchronized incentives, or

to differentiate themselves not only by the volume of

aligned training programs — all indicators that a com-

graduates they produce, but by the speed at which they

munity can operate at the speed required by modern

can align curricula with employer needs. Early movers

project timelines. In 2026, this sort of cooperative

— especially states with statewide talent accelerators or

governance may be one of the strongest predictors of

consolidated economic development structures — are

whether a region climbs, holds, or falls in the rankings.

likely to see these gains reflected more clearly in 2026.

Companies evaluating future locations will increas-

Final Observations

ingly ask not only “How many workers can we hire?”

From major metros balancing maturity to small

but “How quickly can this region re-skill and up-skill

towns mastering agility, the 2025 data reveal an

the team we already have?”

economy diversifying by design. Competitiveness is

Finally, regional cooperation is emerging as an

no longer measured by population or skyline — it’s

underappreciated force in next year’s rankings. Water-

defined by how well a region aligns its people, poli-

sharing agreements, multi-county energy districts, joint

cies, and possibilities.

logistics corridors, and cross-border workforce initiatives

For site selectors and corporate decision-makers,

are beginning to show measurable economic returns.

the message is clear: in 2025, advantage isn’t about size

Corporate investors are responding to regions that can

— it’s about strategy.

Grand Forks North Dakota 23% increase of young professionals ages 25-39 from 2013 to 2023.

GrandForks.org Q4 2025

F-Leading Metro Locations (1).inddc 49

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Site Selection

How to Spot a Community That’s Ready for Your Investment

A site selector’s guide for separating the real partners from pretenders

By Taylor Stepp, Founder & President at Strategic Development Partners

A

s a site selector, I have seen promising projects fail, not due to any one major factor, but because communities weren’t truly aligned and ready to solve problems that come with large industrial projects. Communities are not just the ZIP codes where we invest capital; they are our workforce, regulators, business development partners, and advocates. In today’s hypercompetitive environment where project timelines are shorter, incentives are more complex, and workforce issues are top of mind, choosing the right site is only half the battle.

Choosing the right community partner can mean the difference between a thriving investment and a stalled, costly disappointment. Having a true community partner can help a facility weather storms (literal and physical), solve problems, and continue growth. Comparatively, a community not equipped to handle your project could break your investment. The good news is there are clear red flags and green flags that help you separate the real partners from the pretenders. Here’s how I separate the real community partners from the community pretenders before making my recommendations to my clients.

Pretenders Have Questions, Partners Have Answers

“So where exactly is the water line?” an executive asks matter-of-factly while looking over a site map. Expecting a simple answer, the executive is surprised to hear, “We’ll have to get back to you on that,” from the local economic developer. The development representative continues, “We are pretty sure it is roughly within a given area,” while drawing an imaginary circle around a field. When you hear comments like these, they are telltale signs you are dealing with a pretender. For communities, your site visit is their Super Bowl. This response shows that they did not go through the game plan or perform due diligence to educate themselves. If they don’t value you now, will they when your facility is operational?

Conversely, a real partner community not only knows where the water line runs, but they’ll tell you the pipe size and excess capacity of the water line. This may seem like a trivial detail, but it is very telling. A true partner in development comes prepared to meetings and is equipped with staff to help them answer the hard questions. This demonstrates a commitment to getting your facility what it needs.

Pretenders wine and dine but rarely deliver.

up with, “That’s a major road, but we will see if that’s possible. If so, we will do our best to find a solution that fits with your project, but it will be expensive.” This was maybe not the answer the corporate decision-maker wanted to hear, but it was honest while being in the spirit of being accommodating and stating a financial gap that would need to be filled.

In other meetings, I have heard communities respond to similarly audacious requests with an offhanded “sure” or “not a problem.” A quick, affirmative response to a major request is a giveaway that you are dealing with a pretender. Presently in the United States, we do not have local monarchies that are able to unilaterally abandon roads, remove regulations, and inject significant capital. Local officials must work with numerous other parties to make major changes. Casual responses to significant requests should be a telltale sign that you are either dealing with an inexperienced actor or working with someone who is not being entirely honest. In other words, a pretender. Real partners are upfront and honest about their challenges. They acknowledge them and will work collaboratively with you to overcome them.

All Singing From the Same Hymnal

At major site visits, a small village may be gathered to represent a site.

Many of these individuals represent various organizations with differing interests. You will likely have a worker from the city’s water treatment plant, someone from the power company, another person from the railroad, and so on. In real partner communities, these individuals have collaborated together to execute projects. To prepare for development, community organizations must work together. The fruit of this work can be witnessed firsthand in site visits. Are representatives from the various organizations singing from the same hymnal? Or do they talk

Honesty Is the Best Policy

Several years ago, I led a project where a corporate decision-maker walked into the room and the first thing they said was, “Can y’all abandon that road?” The road in question was a former U.S. highway that had been converted to a local thoroughfare serving industry and residents. Community officials were taken aback but eventually piped 50

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over each other, contradict one another, and offer disparate perspectives? If at any point in your site visit the meeting turns out to be an episode straight out of Family Feud, you likely have found yourself in a pretender community.

Real partners take their collaboration seriously, and this can be felt in site visits. This does not mean that everyone gets along, but it does mean the community unifies to meet its goals. A great illustration of this is in a community where I have closed deals. “How are you all so unified?” I asked the community’s economic development executive.

He told me, “Well, we aren’t. To get on the same page, we get local officials in a room before we pursue funding, have a site visit, or make a major decision. In that room we argue out our differing perspectives, but when we leave that room, we leave in one accord.” Real partners have tough conversations like these, which lead to a more unified community that is better equipped to support your project.

equity. Communities that bet on themselves clearly expect a return on their investment either through increased tax revenue, more jobs, or more economic activity.

When visiting a community, ask about their investment plans. Do they plan to add a spec building in their industrial park? Will infrastructure be upgraded? Also pay close attention to the resources afforded to economic development professionals.

For example, do they have appropriate staff to execute their jobs?

Where a community invests or doesn’t invest shows you how they view their community and its future. As Randy Alcorn once said, “What you do with your money shows what you believe about tomorrow.” Communities that do not invest in themselves clearly show that they believe their community is either not focused on growth or has a bleak future. You do not want to hitch your horse to that wagon.

Put Your Money Where Your Mouth Is

Parting Thoughts

The single most meaningful metric in gauging whether a community is serious is if it invests in itself. If elected leaders, foundations, and economic development boards do not adequately staff their operations, invest in sites, buildings, and infrastructure, and in business development, they are simply not taking development seriously. Why should an outside company invest in your community if you, the people who live, work, and have businesses in that community, don’t do the same? In the corporate world, this concept is similar to stock buybacks. When a company buys back its stock, leadership believes their stock is so undervalued that they will use their limited resources to buy back

Choosing the right community for your investment has never been more important. From widespread NIMBYism, heightened regulations, workforce challenges, and ever more complicated incentives, it is crucial to have the right partner in development.

Pretenders can delay permitting for years, foster community challenges, and cost you millions of dollars in lost incentives. The stakes are high, and the complexities of current development are unprecedented. Choosing the right community will give your company a competitive advantage in the near and long term.

The right partner will show up with answers, not excuses — your balance sheet will thank you.

We’re committed to Economic Development and a clean energy future in New York State.

We offer a wide range of economic development grants, rate discount programs, and energy efficiency rebate programs to help grow your business.

Learn how our programs can benefit your business. Visit www.shovelready.com

Q4 2025

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Foreign Policy

Prepare Yourself for USMCA Part II

As the U.S., Canada, and Mexico edge toward 2026 renegotiations, manufacturers must prepare for new tariffs and shifting supply chains

By Charlie Smith, Geopolitical Strategy Consultant

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025 continues to be a whirlwind of global trade developments. Yet for corporate leaders and investors managing North American operations, one issue stands out: the renegotiation of the 2020 United States-Mexico-Canada Agreement (USMCA). Although a review and potential renegotiation are scheduled for July 2026, early positioning by all three countries suggests the process could begin before year-end 2025.

What that agreement might look like—and how it could affect supply chains, pricing, and investment—remains unclear. The U.S. administration’s first tariff announcements this year targeted Canada and Mexico (along with China), setting off a circuitous path of announcements, pauses, exemptions, and tariffs. The result has been a persistent sense of uncertainty for businesses that depend on cross-border flows of goods and materials.

The fundamentals of the North American economy are at stake. Agricultural goods, energy, construction materials, and automotive manufacturing are only a few of the critical sectors at risk. Even smaller industries can be disproportionately reliant upon USMCA trade, exposing direct operational and cost risks for manufacturers and suppliers throughout the region.

Scenarios To Prepare For

There are three basic outcomes. In the first, the USMCA could be renewed for another 16 years. Another result could be renewal through 2036 but with annual reviews by the U.S., Mexico, or Canada. Lastly, any of the participating countries may formally withdraw within six months, effectively collapsing the agreement.

Business planning should already be underway to prepare for each of these possibilities. The following potential scenarios outline how those outcomes might shape market certainty and manufacturing competitiveness across North America.

rate and annual reviews. A 10 percent flat tariff would be applied to most goods within USMCA, with non-USMCA goods facing higher tariffs. There could be reductions or quotas for more strategic sectors such as steel and energy. High-level investment commitments would be made with few details, while annual reviews would reopen deal uncertainty every year. This scenario provides modest certainty. The core benefits of a legally binding agreement would be in place, but this is counterbalanced by annual reviews and their likely use as leverage.

Transactional Downgrade Renegotiation collapses, leading to withdrawal from USMCA and higher tariffs. Tariffs of 10 to 25 percent would apply to most goods, with reduced rates for significant sectors such as food, autos, and energy, and quotas on others. There would be an extended timeline for resolution to account for bilateral talks, and investment commitments would be postponed. Mexico and Canada could reorient more supply chains with free trade partners—and China. Low certainty would be established. Bilateral trade terms among the three countries would be difficult and lengthy to achieve, putting North American supply chains at high risk of shifting.

Political Pressure and Business Risk

Both Mexico and Canada have been preparing by demonstrating their commitment to U.S. political priorities. Mexican leadership adjusted policies on immigration, organized crime, and Chinese im-

Renewed but Modified A renegotiation deal is reached with tariffs on non-USMCA goods. Terms would largely replicate the current version, with goods not under USMCA facing a higher tariff of 10 to 15 percent. Certain sectors, especially automotive, could be reworked to promote U.S. reshoring, such as through rate quotas. The deal would include firm investment commitments and no regular review as terms extend into the 2030s. This scenario would provide significant certainty, giving Canada and Mexico a large advantage in the current trade environment.

Less Than Free Trade A renegotiation is reached with key changes, such as a flat tariff 52

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ports to align with U.S. expectations. In Canada, frustration with the U.S. administration’s actions has challenged bilateral relations, but Ottawa has largely stayed aligned with Washington on economic and border control policies.

For now, both governments enter the USMCA renegotiations from positions of strength. They were elected relatively recently and have public support to advocate aggressively for national trade interests. Perceived pressure from the U.S. has also strengthened political unity at home, encouraging both countries to coordinate closely in the lead-up to talks.

The U.S. remains the key actor. The administration has shown a willingness to use tariffs and investment requirements as leverage to maximize perceived gains. With Congress playing a limited role, the White House retains significant freedom to shape trade policy. Any revised USMCA will still need Congressional approval, but recent precedent suggests a narrow legislative majority will likely support the administration’s approach.

What Executives Should Watch

Negotiations will be contentious. Canada and Mexico favor extending USMCA and maintaining tariff-free trade, while the U.S. is focused on reducing trade deficits and expanding domestic manufacturing. For corporate decision-makers, this means tariffs may once again become the price of doing business in North America.

Trade dependence remains deep. Per the U.S. Trade Representative, exports to the U.S. make up roughly 75 percent of Canada’s total exports and 80 percent of Mexico’s. At the same time, 33 percent of U.S. exports go to Mexico and Canada—more than the next nine countries combined. That degree of integration means any change in USMCA terms will ripple directly through manufacturing and logistics operations.

Economic indicators add complexity. U.S. growth remains positive but paired with weak consumer outlooks and sluggish manufacturing recovery. Similar pressures exist in Mexico and Canada, where modest GDP growth masks fragile investor confidence. A slowdown in any of the three economies could push leaders toward a more growth-oriented deal.

The U.S. administration’s integration of political and economic agendas also adds risk. The “weaponization” of economic tools— such as tariffs used to achieve policy goals around immigration or security—has become a recurring feature of the trade landscape.

Businesses with North American supply chains should be aware that non-economic issues can drive new tariff actions.

Evidence from this year’s trade deals offers clues to possible outcomes. Agreements announced have often been narrower in scope than initially signaled, suggesting some flexibility for compromise. But investment pledges have lacked detail, and even close U.S. partners such as the United Kingdom continue to face minimum tariff rates around 10 percent.

How To Prepare For USMCA 2.0

The biggest risk may not be that talks fail—but that uncertainty drags on. Annual reviews, conditional clauses, or delayed tariff adjustments could complicate long-term planning. Manufacturers and investors should review cross-border contracts, evaluate cost exposure, and model pricing scenarios under 10 to 25 percent tariff ranges.

In today’s environment, adaptability may be the only certainty.

For companies that plan ahead, even a volatile renegotiation can become an opportunity to reexamine supply chains, diversify sourcing, and strengthen resilience across North America.

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Site Selection

Site Readiness Is Broken: What Manufacturers Should Demand From Their Locations You can’t afford delays—here’s what to ask for before picking your next site

By Brad Migdal, Executive Managing Director, Americas, Strategic Consulting at Cushman & Wakefield

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veryone says a site is “shovel-ready.” That phrase has lost all meaning. If you’re building a manufacturing facility today, you need more than a cleared patch of dirt and a marketing flyer.

You need answers—real ones.

Forget the buzzwords. Ask for the utility capacity. Is there capacity to deliver power on the lines near my site? How is my site served? Is there capacity for my power needs at the substation that serves my site?

Has anyone confirmed availability of transformers, circuit breakers and switchgear? Is the land site truly for sale, or is it tied up in probate with three owners and a cousin on sabbatical in the Himalayas?

The margin for error is shrinking. A $200 million project with a 28-month delivery target can’t afford uncertainty. And yet, too often, due diligence reveals that half the sites in play aren’t viable. Zoning is unclear. Environmental assessments are half done. Power isn’t real.

Your site decision isn’t just about geography or tax rates. It’s about timeline. Certainty. A clean path from announcement to operations.

And in this market, the only way to get that is to push hard in the early stages.

You can’t rely on the real estate flyer. You need parcel maps, utility load sheets, ownership breakdowns, entitlement status and infrastructure timelines—all before the local government’s RFI response even makes it to your inbox. If that’s not available, assume there’s a problem.

The best sites are the ones with answers ready. The ones that have been pre-vetted with the local utility. The ones where someone has actually taken the time to see if your site plan fits on the parcel and the site has access to the utilities and roads.

And even then, it pays to pressure-test everything. Ask what assumptions have gone into the site plan. Have they confirmed the utility lead times with suppliers? Have they modeled power delivery scenarios under current grid constraints? Are there parallel efforts already underway to accelerate permitting or substation upgrades?

Don’t stop at the site itself. Dig into the ecosystem and community. If your facility needs 300 workers, where are they coming from?

Is there a feeder school, a community college program, a state training incentive that actually funds real skills development? Is the labor pool competitive—and if it is, how are you going to win your share?

A truly ready site is more than real estate. It’s a convergence of logistics, utilities, labor, entitlement and local readiness. Miss any one of those, and the entire project wobbles.

Too many companies fall for the promise of speed, only to get bogged down in delays. Six months lost to power upgrades. Nine months waiting on rezoning. A full year eaten up by permitting revisions. The opportunity cost is massive.

The burden falls on you to ask smarter questions, earlier. If your site readiness checklist ends at “zoned industrial,” you’re going to get burned. Make readiness the first hurdle, not the last. Ask for verified timelines. Ask for supporting documentation. Ask who else is already in line for that power allocation or water tap.

Because you’re not buying land. You’re buying a timeline. And if that timeline slips, so does your product launch, your revenue, your competitive edge.

Your team should treat site readiness the same way you treat equipment procurement, workforce planning or engineering milestones.

It’s not a footnote. It’s a project risk. And in this market, your ability to navigate it well is a competitive advantage.

The clock starts now. Pick a site that’s actually ready to run—not just in name, but in every detail that matters to your bottom line.

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Real Conversations.

Real Projects.

Real Insight.

Get the unfiltered conversations behind the projects.

From workforce shortages to grid constraints, from incentives strategy to megaproject execution—the Area Development Podcast delivers the insight serious decision-makers rely on.

Listen anywhere. Learn something every time.

LISTEN NOW

Subscribe wherever you get your podcasts

— or visit AreaDevelopment.com/podcast

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Cover Story

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The Workforce Bottleneck in America’s Manufacturing Revival As investment surges, a thinning workforce forces companies to rethink where—and how—they build in America

By Amy Matias, Area Development Staff, and Andy Greiner, Editor

T

he warning signs are everywhere. Ford CEO Jim Farley, recently said the company can’t fill five thousand mechanic jobs even at $120,000 per year.

“A bay with a lift and tools and no one to work in it — are you kidding me?” he said.

The automotive giant’s struggle is a snapshot of a broader industrial reality: as billions pour into U.S. factories and clean energy projects, the skilled labor simply isn’t there.

To explore this skilled trade gap more deeply, Area Development partnered with Lightcast, a big-data company that pioneered the collection and analysis of information on the labor market, and they helped provide a uniquely curated view of the skilled-trades pipeline — drawing on federal apprenticeship data, college completions, and employment projections — to reveal why workforce readiness has become the most important site selection variable in America.

Every major corporate investment begins with a simple question: Can we find the workers?

Today, the answer increasingly comes with hesitation. Across the U.S., manufacturers and infrastructure developers are hitting a wall of workforce constraints that could define the next decade of industrial growth.

From semiconductor fabs in Arizona and Texas to clean-energy projects across the Midwest and South, companies are racing to build capacity. But as projects multiply, the pool of skilled labor isn’t keeping up. Employers are competing for the same welders, electricians, Q4 2025

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machinists, and maintenance techs that other sectors already depend on.

“Labor metrics are reshaping site selection. Companies now weigh workforce availability and training infrastructure as heavily as real estate costs. Incentives tied to upskilling and partnerships with technical colleges are becoming standard tools to mitigate skilled trade shortages,” said Ben Harris, head of Industrial Consulting at Cushman and Wakefield.

For corporate decision-makers, that reality has reshaped the calculus of site selection. Workforce risk — once a secondary concern — now rivals power availability and permitting speed as a top constraint on project timelines.

“When a company commits to a billion-dollar facility, it’s making a 20-year bet on talent,” said John Loyack, vice president of Economic Development and Workforce at the North Carolina Community College System. “The best states aren’t selling available workers; they’re selling their ability to train the next generation. Every project starts and ends with workforce confidence.”

The Numbers Behind the Pressure

To understand the scale of this challenge, Area Development and Lightcast built a dataset focused specifically on Skilled Trades Workers — occupations that rely on advanced technical or mechanical training but not a four-year degree.

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from community colleges, trade schools, and Department of Labor–registered apprenticeship programs.

The goal: to see where the nation’s workforce pipeline is most constrained.

Each year, American employers report nearly 2.9 million job openings across these skilled trades. Over the same period, education and training systems collectively produce only about 1.25 million qualified graduates.

That leaves roughly four trained workers for every ten available jobs — a shortfall of 1.7 million workers annually.

“What we’re seeing is a structural shift and imbalance in the labor market that’s been building for decades,” said Josh Wright, executive vice president at Lightcast.

“The U.S. is getting older. Birth rates are declining. And fewer young people — those we have — want to or are encouraged to work in the trades. Even as demand for technical and skilled labor rises, the education and training pipeline hasn’t kept pace — and that’s the core tension shaping every site decision right now.”

by federal policy, private investment, and geopolitical necessity.

The CHIPS and Science Act, Inflation Reduction Act, and Bipartisan Infrastructure Law together have triggered the largest wave of industrial construction since

1.7

MILLION that’s the annual shortfall between skilledtrade openings and qualified graduates.

The demographic drought identified in Lightcast’s Rising Storm report compounds the problem, as an aging workforce exits faster than the pipeline can replenish it.

As the U.S. doubles down on domestic manufacturing, clean energy, and supply chain resilience, this imbalance has become the hidden bottleneck in the nation’s industrial strategy.

“If you can’t find the people to build or maintain it, the project just doesn’t pencil out anymore,” said David Greek, CEO of Greek Real Estate Partners. “Labor is now the first question, not the last.”

The Industrial Moment: Building Faster Than We Can Train

After decades of offshoring, the U.S. is experiencing what many call a manufacturing renaissance — driven

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PEOPLE-FOCUSED. GROWTH-DRIVEN. Work with the state that knows how to develop a talented and skilled workforce.

Georgia’s led the nation in workforce development for over a decade with programs like Georgia Quick Start and top-ranking universities and colleges.

Learn why people are choosing Georgia at Georgia.org

Cover Story

5,000 that’s the number of mechanic roles Ford can’t fill even at salaries of one hundred twenty thousand dollars, Ford CEO Jim Farley said.

World War II. But those policies assume a workforce that doesn’t yet exist.

Lightcast’s Skilled Trades dataset makes that tension clear: industrial capacity is expanding faster than our ability to train the people who will build, install, and maintain it.

In sectors like semiconductors and nuclear energy — where precision and safety are paramount — the required skills take years to develop.

“As America grows its domestic semiconductor ecosystem and reinforces its global technological leadership, a highly skilled workforce will ultimately determine our ability to compete and fulfill the goals set by Congress and the Administration in the CHIPS and Science Act. Unfortunately, the U.S. faces a shortfall in the supply of skilled workers that the semiconductor industry must meet,” John Neuffer, President & CEO, Semiconductor Industry Association, said in a recent report.

The nuclear sector faces the same squeeze. The U.S. is investing heavily in small modular reactors (SMRs) and next-generation nuclear technologies, yet the workforce that operates and maintains them is aging out.

“God, like, it’s hard enough for us trying to recruit people, and then you’ve got to fight with the other companies trying to get them,” said James Walker, CEO of Nano Nuclear. “They’re getting paid very

nicely, but it’s worth it — if you don’t recruit them, you don’t build anything.”

Electricians, plumbers, HVAC technicians, and machinists — the backbone of the industrial workforce — remain in short supply. Electricians are one of the few trades where graduates slightly outnumber openings; most others fall short.

Machinists face about 2.4 openings per graduate, maintenance and repair workers nearly 4 per graduate, and highway maintenance roles exceed 16 to 1.

These figures incorporate both traditional college completions and DOL-registered apprenticeship graduates, giving a fuller picture of how local training ecosystems are performing.

“The gap isn’t so much getting entry-level journey workers; it’s that transition all the way into superintendent and field leadership,” said Scott Canada, president of Renewable Energy at McCarthy Construction. “That foreman-to-superintendent step is really tough.”

At the extreme end of the data are the roles with the smallest pipelines — occupations where training completions round down to zero in many states.

Semiconductor process technicians, furnace operators, and nuclear technicians show more than 100 openings per graduate. Even when apprenticeship completions are added, the gap barely narrows.

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Labor is now the first question in every site decision, not the last, said David Greek, CEO, Greek Real Estate Partners In a typical year, fewer than 1,200 people nationwide complete training that qualifies them for nuclear reactor operations. Semiconductor processing graduates number only in the hundreds.

training and short-form credentials that align with how technology is transforming the factory floor.”

Are Schools Keeping Up with Employer Demand?

Even with the inclusion of Department of Labor apprenticeship completions, this analysis captures only part of the training picture. Union programs, employer-run academies, and military-to-civilian transitions often fall outside official data streams.

Many roles in the skilled trades don’t require postsecondary education — just a high school diploma and significant on-the-job training. The Bureau of Labor Statistics lists dozens of occupations, from metal pourers to assemblers, where moderate on-the-job training is the standard. Those workers rarely appear in completion counts, underscoring why even the best datasets can only approximate the real supply of talent.

“No dataset tells the full story, but every indicator points in the same direction,” Wright said. “The competition for skilled labor is real, and it’s intensifying.”

The takeaway: treat these numbers as diagnostic, not discouraging. They pinpoint the pressure points where collaboration among employers, colleges, and governments yields the highest return.

“The shortage of skilled trades is no longer just a labor issue — it’s a location strategy driver. Corporate occupiers and manufacturers are prioritizing regions with strong training pipelines, community partnerships, and incentive programs tied to workforce readiness. Talent sustainability now rivals cost and infrastructure as a top factor in site selection,” Harris said.

The story of America’s industrial comeback is being written in concrete and steel — but its success depends on people.

The same policies fueling billions in investment must be matched with investment in training. For site selectors, consultants, and corporate planners, the new reality is clear: The true competitive advantage isn’t cheap land or fast permitting — it’s a workforce pipeline that works.

If Ford can’t hire at that wage, smaller manufacturers entering the market face even steeper odds. It’s a reminder that the next era of industrial growth won’t be defined by capital alone — but by whether anyone is trained to turn the wrench.

When job openings are plotted against 2024 completions — including both college and registered-apprenticeship output — most occupations fall far below equilibriumMaintenance workers, machinists, and power technicians show gaps no single state can close alone.

“Our challenge isn’t just finding workers — it’s reaching them early enough,” Loyack said. “We’re now taking workforce awareness all the way back into middle schools.

Businesses like Eli Lilly and Pratt & Whitney are helping us design curricula that introduce manufacturing and biotech careers before students even enter high school.”

That early intervention is key to aligning future supply with industry demand, he added. “Employers aren’t just looking for entry-level workers anymore,” Loyack said.

“They need people who can keep up with automation, AI, and leadership training throughout their careers. That’s why community colleges are pivoting to short-form microcredentials and modular learning — it’s about meeting businesses where they are.”

To explore how states are responding, Area Development will also examine programs like Texas State Technical College — which ties funding directly to job placements — and Maricopa Community Colleges in Arizona, a national model for semiconductor workforce training.

The Policy Paradox: Investment Without Capacity

Federal incentives are unlocking massive private investment — more than $850 billion in announced manufacturing projects since 2021 — but the education system operates on a slower cycle.

It takes months to finance a facility, years to build it, and a decade to rebuild a technical workforce pipeline.

“Roles are becoming more sophisticated, and it’s not just about filling jobs anymore — it’s about matching aptitude and adaptability,” Nicole McBride said during a recent interview with the Area Development podcast.

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Limits of the Data — and Why It Still Matters

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AGE MONTGOMERY COUNTY, MARYLAND: A LAUNCHPAD FOR INNOVATION AND DEVELOPMENT A top-tier workforce and major developments position the county as a leading destination for modern industry

By MDEDC

S

teps from the nation’s capital, Montgomery County, Maryland, is home to a thriving business ecosystem, top-tier academic institutions, and a highly educated and diverse talent pipeline.

Anchored by a variety of commercial developments, the county offers companies of all sizes the infrastructure and strategic location they need to grow and succeed. Modern, transitconnected office spaces, state-of-the-art lab facilities, vibrant mixed-use communities, and proximity to the nation’s capital — as well as 18 federal agencies and 36 federal labs — make it easy for global brands and startups to attract and retain talent. In fact, the county is home to more than 1 million residents, where 33 percent of adults (25 or older) have an advanced degree.Additionally, the state of Maryland ranks second for the highest concentration of Ph.D.s. This is a key differentiator to the more than 350 life sciences businesses that specialize in gene and cell therapies, vaccines, pharmaceuticals, and advanced manufacturing in Montgomery County. More than 6,000 technology companies call Montgomery County home, which is also the chosen location for global giants like Lockheed Martin, AstraZeneca, Novavax, and Marriott. With a diverse workforce fueling high-growth industries like satellite and advanced communications, defense, cybersecurity, and quantum computing, Montgomery County is a launchpad for growth and innovation.

Downtown Silver Spring, MD; image courtesy of Montgomery Planning.

Whether companies are starting off or are already well-established, they will find a thriving and robust ecosystem to foster building strong partnerships, proximity to top academic institutions to fuel their talent pipeline, infrastructure that can enable their business to expand and grow, and a welcoming, vibrant local culture that provides an unmatched quality of life for their employees. Montgomery County is Maryland’s largest, wealthiest, and most diverse county. Home to award-winning restaurants, entertainment venues, more than 400 local parks, and with easy access to vineyards, golf courses, lakes, mountains, and forests, Montgomery County is the perfect blend of urban, suburban, and country.

Recent development opportunities are primed to accelerate Montgomery County’s continued growth as an epicenter for innovation. The transformative Viva White Oak project, also the county’s first-ever tax incremental funding proposal, offers 280 acres that are ready for development. Located adjacent to the FDA headquarters and near Adventist HealthCare White Oak Medical Center, Viva White Oak is approved for more than 12 million square feet of mixed-use development. The Viva White Oak site is a $2.8 billion investment featuring more than 3 million square feet of lab space, office/medical office, retail, and up to 5,000 quality residences.

With a strategic focus on the life sciences and biohealth industries, Viva White Oak stands out with the promise to expand the already large life sciences cluster in the county and is anticipated to create at least 9,000 jobs. With top-ranking academic institutions like the Universities at Shady Grove, ranked within the top 20 in the country, and Montgomery College, the No. 1 community college in the state, sites like Viva White Oak present a unique opportunity for businesses looking to broaden their reach and gain a global presence. Viva White Oak is on track to shape Montgomery County’s next chapter of growth and deliver additional state-of-the-art facilities to a community that is known for excellence and high-end amenities.

This contributed content was written by the Montgomery County Economic Development Corporation and was approved for publication by Area Development.

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MONTGOMERY COUNTY, MARYLAND

At the heart of the Capital Region, discover a unique synergy of location, talent and infrastructure.

Rendering of Viva White Oak, courtesy of MCB Real Estate.

The Viva White Oak site is a $2.8B investment featuring more than 3m sq. ft of lab space, office/medical office, retail, and up to 5,000 quality residences.

280 12

Acres

Million square feet of mixed-use development

THINKMOCO.COM The Montgomery County Economic Development Corporation is a public-private partnership funded by Montgomery County.

Workforce

Why People Now Drive Place Strategy Companies nowadays must understand how people live, work, and connect to the workplace

By Marissa Huber, Director, Strategic Consulting, Workplace Strategy & Change Management at Cushman & Wakefield

F

ive years after the pandemic upended the world of work, companies are still redefining what “normal” means. Hybrid schedules, new expectations for flexibility, and shifting life priorities have blurred the line between workplace and community. For corporate leaders making location decisions — and for the communities trying to attract them — success now depends on more than cost or infrastructure. It depends on how well a place supports the people who live and work there.

As a workplace strategist at Cushman & Wakefield, I’ve seen organizations across industries confront the same challenge: how to connect business performance with the human experience of work. The answer lies in understanding people — their behavior, their needs, and how the places they occupy either help or hinder them.

Rebuilding the Why — Inside the Hybrid Workplace

Hybrid work is now the baseline for most companies. Nearly 70 percent of Fortune 100 firms operate with some form of hybrid rhythm, according to Flex Index. Anecdotally, what we see in the field is typically three days in the office and two remote. But as executives often admit, the real challenge isn’t the schedule — it’s the purpose.

Employees and leaders alike are asking what the office is for. When it competes with the convenience of home, it must offer something more meaningful than a desk and Wi-Fi. That means dependable technology, well-designed spaces for both collaboration and focus, and an environment that feels intentional rather than obligatory.

The best workplaces today function like communities. They encourage spontaneous connection, offer spaces for different kinds of work, and give employees a reason to want to be together.

Culture, however, is what brings these spaces to life. Organizations that successfully engage their people do so through visible, present leadership. Executives who walk the floor, hold informal conversations, and model collaboration send a powerful message that connection matters. Engagement doesn’t come from mandates — it comes from presence.

Younger employees, often portrayed as disengaged, actually crave mentorship and a sense of purpose. What keeps them home isn’t indifference but the absence of meaningful interaction once they arrive.

Aligning leadership behavior with workplace goals builds loyalty that no policy can replicate.

The Lifecycle Lens — Designing for Every Stage of Work and Life

Workplace and location strategies are converging, driven by a growing recognition that people’s lives outside of work directly influence how — and where — they work best.

Hybrid work has redefined not just when people work, but where.

For companies with employees in the office three days a week, the question becomes: what happens on the other two? Do we want people isolated at home — or engaged in ways that strengthen both their connection to the company and to the community?

Forward-thinking organizations and communities are starting to fill that gap. Access to coworking spaces, local cafés, parks, and “third places” gives employees flexibility to work from anywhere — while keeping them active participants in local life. When people can grab coffee near home, bike to a coworking hub, visit a farmers market after work, or support local restaurants, it reinforces why they’ve chosen to live — and stay — there. And when being in the community feels this convenient and rewarding, many may even choose to spend an extra day in the office — not because they have to, but because it fits naturally into their rhythm of life.

Employees at different life stages value different things. Earlycareer professionals often prioritize vibrancy, connection, and access to culture and amenities. Families and mid-career workers focus more

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Increase in Required Office Days

Office attendance policy increased required days by 10% since Q1 2024 to encourage more in-person work (per Stanford’s Nick Bloom & Flex Index).

Courtesy Cushman and Wakefield.

on schools, safety, and childcare. Those in the sandwich generation are balancing both childcare and eldercare, seeking flexibility and nearby resources to support their responsibilities. Later in life, people often look for stability, health care access, and a sense of belonging — along with opportunities to contribute, connect, and shape their next chapter.

Companies making location decisions now factor these dynamics into workforce planning. Communities that offer a mix of housing, reliable childcare and eldercare, good schools, and recreation appeal to a broader range of employees and help reduce turnover.

Workforce retention begins long before recruitment. The most competitive regions align livability and career opportunity so that people don’t have to choose between professional growth and personal well-being. Employees are not static. They grow, age, and evolve, and they expect the places they work and live to evolve with them. Communities that anticipate and support those transitions will become the most resilient labor markets in the years ahead.

Beyond the City Limits — The New Geography of Talent

The geography of talent is shifting. For decades, companies equated “access to workforce” with proximity to major urban cores — dense labor markets, transit, and global visibility. But hybrid work, demographic shifts, and economic realities are redistributing opportunity.

Aging populations, evolving family structures, and cost-of-living pressures are influencing where people choose to live. Many are seeking places that offer stability, affordability, and quality of life across all stages of work and life — and employers are increasingly focused on how to attract and retain that talent.

Suburbs and mid-sized metros are gaining ground by embracing authenticity and convenience. They don’t need to mimic big cities

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— they win by being themselves. Communities that lean into their identity — rather than chasing scale — create stronger connections between place, people, and purpose.

In my work, I’ve seen this play out in different ways. A client relocating to Boise, Idaho, found the city’s outdoor culture closely aligned with their employees’ values and mission. Another team choosing Alpharetta, Georgia, prioritized parking and walkability over a longer downtown commute; the energy around Avalon’s restaurants and retail reflected the kind of everyday experience their people wanted.

And Carmel, Indiana, came up recently in discussion with economic developers for its thoughtful planning and highly walkable downtown — a place that’s become known for livability and community connection — something I’ve experienced firsthand during its annual Christkindlmarkt.

Each of these examples shows how communities can thrive by leaning into what makes them unique. These places didn’t chase scale — they built identity.

For corporate decision-makers, the lesson is that access to talent isn’t just about head count; it’s about fit. Employees want to live in places that align with their values and lifestyles.

When evaluating markets, companies increasingly weigh cost of living, housing availability, family friendliness, and recreation early in the process. These quality-of-life indicators are no longer afterthoughts — they are part of the ROI calculation.

During a recent discussion with industry peers, someone noted how valuable it can be to quantify what truly makes a city “bike-friendly,” “dog-friendly,” or “walkable.” Backing these qualities with data — such as park acreage, lighting coverage, or bike-lane miles — gives decisionmakers a more consistent way to compare markets. Communities that

The best workplaces now function like robust communities translate lived experience into measurable outcomes build credibility and trust with corporate site teams.

Even as hybrid work expands, commuting still matters. The ease of getting to and from work affects not only productivity but also employee satisfaction. When local infrastructure supports short, predictable commutes, it enhances a region’s competitiveness.

Ultimately, authenticity is the new differentiator. Instead of trying to be all things to all companies, communities are finding success by emphasizing what’s real — their workforce strengths, livability, and character. The same holds true for employers. Companies that align workplace strategy with their people’s values and rhythms of life create more engaged, resilient organizations.

How we design and experience work today will shape the future of site selection — not by square footage or skyline, but by how well a community helps people live their lives.

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Workforce

The Skilled Trades Are Ready for a Digital Future

AI is freeing skilled tradespeople to focus on craftsmanship, safety, and growth as labor pressures intensify

By Kyle Spencer, Director of NFPA LiNK, NFPA

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avigating the intricacies of the skilled trades industry has never been straightforward, but today we’re standing at a crossroads defined by two unprecedented barriers.

On one hand, a growing wave of retirees is leaving a gaping hole in the workforce. As millions of seasoned workers leave their positions, employers are racing to fill an enormous number of open roles. In the construction industry alone, the National Center for Construction Education and Research (NCCER) reports that 41 percent of the current workforce is expected to retire by 2031.

Without adequate staffing, projects can get derailed, costs can rise, quality can plummet, and timelines can stretch — threatening the stability of the industry.

On the other hand, this already overextended workforce is taking on more responsibility than ever to meet the demands fueled by infrastructure investments and rapid technological innovation. As large-scale projects create a surge in demand for skilled tradespeople and new inventions constantly require time-intensive reskilling, tradespeople are losing the ability to focus on their craft.

To overcome these strains, it’s clear that the skilled trades industry needs two things: more workers and more time. Through digitization and advanced AI-powered technology, it’s possible to start giving the industry both.

The Stats Are In: The Skilled Trades Are Ready for Change

The National Fire Protection Association’s most recent survey highlights how critical digital transformation has become in solving the industry’s most pressing challenges. Ninety-five percent of respondents agree that AI already has a place in at least some day-to-day job functions, underscoring its growing role in helping the workforce adapt. Thirty-one percent see AI as vital for streamlining routine tasks amid ongoing labor shortages, freeing up time for training as technology reshapes job requirements.

Even more telling, 39 percent believe AI can help attract younger, tech-savvy professionals by reframing the trades as knowledge-intensive, highly technical, and future-oriented careers rather than outdated or physically grueling ones. This shift in perception, combined with the job security the industry provides, has the potential to strengthen the workforce pipeline at a time when it’s needed most.

Modern-day problems require modern-day solutions, and using AI and other digital tools is what the industry needs right now to combat current hardships. In fact, 64 percent of respondents say they have already seen tangible improvements in team workflows and collaboration since adopting these tools.

AI in the Skilled Trades: What It Looks Like Today

Though some professionals — 25 percent of respondents, according to the survey — remain skeptical of AI’s purpose in the skilled trades, many have seen clear benefits from adopting advanced technologies. The rapid integration of AI in other industries, especially those where entry-level positions are being eliminated, can make people wary, but the skilled trades pose a unique buffer.

Unlike other careers, the skilled trades require a human touch that robots can’t offer — machines can’t turn screws, pull cables, weld pipes, or perform the physical work itself. The industry will always need people for the heavy lifting, quick thinking, and detail-oriented craftsmanship, but AI can make it easier to focus on high-value tasks and embrace a growth mindset — increasingly important as professionals combat labor shortages and knowledge gaps.

Today, AI is emerging as a valuable support system, allowing tradespeople to spend less time buried in paperwork and more time on tasks that matter. According to another survey, AI is saving trade workers an average of 3.2 hours per week — more than 160 hours per year. By automating administrative responsibilities such as generating work orders, tracking inventory, and 66

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ensuring code compliance, AI helps fill critical labor gaps. With more flexible schedules, professionals gain time for mentoring and upskilling.

Beyond efficiency, AI is also reshaping perceptions of the skilled trades. For younger workers, especially Gen Z, the integration of advanced technologies signals that the trades are not anchored in the past but are a lucrative, highly skilled sector.

AI is already streamlining many essential processes — automatically calculating material needs and costs from blueprints, optimizing project schedules, managing budgets, and drafting policies. Through these processes, AI gives skilled tradespeople exactly what they need to thrive: more time and more focused workloads, preserving the irreplaceable human skill, creativity, and problem-solving that define the trades.

What’s Next for AI in the Skilled Trades

While current use cases focus on streamlining manual, timeconsuming tasks, there’s an exciting future of AI-driven capabilities on the horizon — especially in safety and workforce development.

Many of these technologies are still in development or deployed on a small scale, but it’s only a matter of time before manual automation evolves into full industry transformation.

One of the most promising frontiers is AI’s potential to make jobs significantly safer. Tradespeople often work in environments where hazards are constant — construction sites, manufacturing floors, utility plants — and AI is beginning to serve as an extra layer of protection. Computer vision systems can flag missing PPE,

detect unsafe tool usage, or identify workers venturing too close to high-risk zones. AI-driven predictive maintenance tools can monitor equipment and anticipate failures before they become dangerous malfunctions, and AI-assisted code compliance reviews ensure that building systems meet the latest safety standards.

AI’s evolving role also points to a future where real-time data and dynamic safety systems become the norm — evacuation signs that adjust based on smoke and heat spread or crowd-management algorithms that reroute people to avoid hazards. Other experimental tools, such as flashover-prediction models and rapid fire-spread simulations, show how the same technologies could protect tradespeople across industries.

At the same time, AI will not only help the industry respond to emergencies; it will build resilience in the workforce itself. Through AI-powered training platforms, apprentices can practice high-risk tasks in zero-risk virtual environments. Digital work-order systems and automated planning tools can also reduce the mental burden and error risk that often lead to accidents in the field.

Looking Ahead

AI is becoming less about replacing what skilled tradespeople do and more about keeping them safer, sharper, and better prepared to focus on the physical craft no machine can replicate. With labor and knowledge gaps to overcome, AI is streamlining tedious tasks and helping tradespeople efficiently upskill, creating a more forwardthinking, future-ready industry.

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Workforce

Generational Forces at Work

Demographics make a huge impact on how and where companies design and situate their offices

By Chris Volney, Managing Director, Location Strategy Consulting at CBRE

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our generations are currently represented in the workforce: Baby Boomers, Gen X, Millennials, and Gen Z. Each of these cohorts has been shaped by world events and changes in technology that drive differences in where and how they prefer to work. As employers compete to attract and retain top talent, these generation gaps have real-world impacts on how companies develop their location and workplace strategies.

Since it’s neither practical nor effective for employers to have office locations and policies that differ from one generation to the next, it’s necessary to try and thread the needle in a way that attempts to meet the expectations of a multigenerational workforce. This piece focuses on the differences between the two generations on either end of the age spectrum in today’s workforce — that is, Baby Boomers and Gen Z — as they relate to office site selection and workplace strategy.

The post-pandemic debate about the future of work has largely been settled, as the vast majority of organizations now have policies allowing for some form of hybrid or flexible schedules with a combination of in-office and at-home or remote work. With this model, there’s often talk of the need for employers to “earn the commute,” and the physical location, as well as the experience within the office, have gained even greater importance as part of broader talent-driven business strategies. Developing optimal location and workplace strategies requires employers to consider the often competing preferences of multiple generations.

these companies would likely, but not necessarily, be different from those of companies focused on hiring junior talent.

For example, a look at the top U.S. metro areas by Gen Z vs.

Baby Boomer workforce representation can be instructive. Many of the metro areas with the highest representation of Gen Z in the workforce are economically dynamic Sunbelt cities with large universities such as Austin, Nashville, and Phoenix. The markets with the highest representation of Baby Boomers are more likely to be located in the Midwest and Northeast. Boston is notable for being on both lists, indicating that there is an abundance of both young and late-career talent, which translates to that market having less representation among the two middle generations (Gen X and Millennials).

Aside from identifying and selecting an optimal metro area, a secondary question often posed as part of the site selection process is where within a particular market is the best place to locate an office to support a company’s talent attraction goals. This is another area where generational and life-stage differences can lead to starkly different answers.

Historically, the Boomer generation has preferred single-use office campuses located in the suburbs, likely closer to where more of that generation lives. Younger generations, particularly Gen Z

Multigenerational Location Strategy: Where Do Employees Prefer to Work?

A perennial goal for employers is positioning themselves to attract the high-quality talent that is critical for their business. Geography plays a large role in this — both on a macro level (which markets in the U.S. will provide the right labor pools?) and on a micro level (which submarkets within a given metro will be most attractive to target talent?).

On a national level, there are stark differences in the composition of metro area labor pools based on the age and experience of the workforce. Certain companies may have business models that rely heavily on more junior (Gen Z) talent to fuel their growth in such roles as sales associates, financial analysts, or junior software developers. These companies would likely prefer markets with a younger workforce that perhaps also has a robust university system that continually generates new, high-quality talent.

Other, often more mature-stage companies could alternatively choose to focus their hiring on more experienced mid- to senior-level talent with greater levels of specialized expertise, strategic thinking, and client credibility. The optimal markets for 68

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Workforce

ized offices and teams. However, Gen Z, like Millennials before them, are further redefining the workplace. In particular, Gen Z’s priorities include remote and hybrid-first expectations, flexible workspaces, and a global mindset.

Companies must rethink real estate footprints, invest in digital infrastructure, and offer flexible work models and workspaces to attract and retain Gen Z talent.

Engagement and Retention Boomers often stayed with employers for decades, valuing stability and loyalty. Gen Z, however, is more open to job-hopping. Retention strategies must focus on engagement, not just compensation.

They seek purpose, value alignment, mental health support, and career mobility.

Retention now hinges on culture, transparency, and personalized career development, not tenure-based rewards.

and Millennials, are more likely to live in urban mixed-use areas and prefer their offices to be in similar environments. These younger generations have come to see more fluidity between their home and work lives, so it makes sense that they want the area around their office to be similar to the places where they live. This has led to lifestyle factors like walkability, retail, restaurants, and recreation opportunities to be integral parts of the office site selection process.

Intuitively, this generally results in companies with a larger representation of Boomers seeking more suburban office locations, while those skewing younger will focus on more dynamic, urbanlike settings that blur the lines between live, work, and play. Many companies are seeking locations that balance the needs of multiple generations, and this has contributed to the success of “urbansuburban” office markets that share many of the benefits of both downtown and suburban places. Examples include Tysons Corner outside D.C., Jersey City, N.J., Central Perimeter outside Atlanta, and University Town Center north of San Diego.

Training and Continuous Learning Boomers often preferred structured, instructor-led training and valued deep institutional knowledge. In contrast, Gen Z expects on-demand digital learning, interactive and gamified experiences, continuous learning, and social learning.

Companies need to invest in modern learning ecosystems and shift from static training to dynamic, learner-driven models.

Employers face tough decisions on how to accommodate the often disparate location and workplace preferences of multiple generations. While there are, of course, individual differences within all generations, Gen Z’s priorities overall are a stark departure from those of the Baby Boomer generation. If the goal is to attract and retain top talent, employers will need to adapt their strategies to reflect these distinct generational priorities.

Multigenerational Workplace Strategy: How Do Employees Prefer to Work?

Aside from location, the experience within the four walls of the office is likely of even greater importance to employee attraction and retention, and this is another area where there are marked differences across generations. This piece explores three areas, out of many, where this is the case: proximity and workstyles, engagement and retention, and training and continuous learning.

Proximity and Workstyles For much of their career, Boomers were accustomed to central-

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Last Word

Smart Executives Are Paying Attention to Rural Opportunity Zones A rare chance to shape where federal investment flows could set up small-town America for long-term economic gain

By Kate Crowley, Founder, CapCivic

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or years, Opportunity Zones were viewed mostly as a tax play — a way for investors to park capital gains while checking the “social impact” box. That narrow view is about to change.

With the passage of the One Big Beautiful Bill Act (OBBBA) in 2025, Congress permanently extended and retooled the program, ushering in what’s being called Opportunity Zones 2.0. This overhaul turns what was once a temporary incentive into a durable strategic framework — one that rewards foresight, community engagement, and long-term investment. The companies that act early, particularly in rural America, will enjoy a decade-long head start.

From Tax Break to Growth Strategy Under the updated program, businesses that reinvest capital gains into designated zones through Qualified Opportunity Funds can defer taxes for five years, cut those taxes by 10 percent on standard investments, and by 30 percent for rural projects. After ten years, gains from OZ holdings are tax-free.

But beyond the math, OZ 2.0 introduces something executives have wanted all along: predictability. The program is now permanent, with new designations to be made every ten years. The first cycle begins July 1, 2026, when governors will have a 90day window to nominate new census tracts that meet updated criteria.

That means corporate leaders have time — but not much — to position their portfolios, engage state officials, and ensure that their properties or projects are on that next map. For companies in real estate, logistics, manufacturing, or energy, it’s a rare chance to shape public-policy geography before it’s drawn.

The Rural Multiplier The biggest story inside Opportunity Zones 2.0 isn’t the permanence — it’s the pivot to rural America.

Rural Opportunity Zones aren’t charity—they’re policy priorities Rural zones now receive a richer suite of incentives: a higher basis step-up, a lower threshold for required property improvements, and the standout 30 percent reduction in taxable gains. That’s a direct signal from Washington that rural and small-market investments aren’t charity — they’re policy priorities.

And the timing couldn’t be better.

While urban development faces rising costs, labor shortages, and zoning friction, rural markets are flush with ready-to-work populations, access to lower-cost land, and growing infrastructure support for broadband, energy, and logistics. For manufacturers and supply-chain operators under pressure to diversify and near-shore production, this is the opening they’ve been waiting for.

A rural Opportunity Zone can cut both time and cost from a project. It can also deliver reputational dividends: a company seen as building in the places America left behind gains political capital, goodwill, and often, priority access to state-level incentives layered on top of the federal OZ benefits.

Why Acting Now Matters Every major company has property in markets that could qualify — but inclusion

isn’t automatic. Governors nominate tracts, and nominations are competitive.

To make the case, companies should begin immediately: • Audit your holdings. Identify assets in tracts where median family income is below 70 percent of the state or area median.

• Engage state and local officials. Build relationships and communicate how your investments support employment and economic stability.

• Gather the proof. Data on hiring, capital investment, and community impact helps governors justify nominations and ensures your voice is heard.

Waiting until 2026 means reacting to a map drawn without your input. The companies that prepare now will define which regions — and which corporate footprints — qualify for the next generation of OZ benefits.

For C-suite leaders, Opportunity Zones 2.0 should be viewed less as a compliance topic and more as a competitive planning tool. Permanent tax advantages can offset future cap-rate compression, hedge inflation, and open access to regions primed for growth.

At the same time, the rural tilt of OZ 2.0 aligns directly with broader trends in site selection and industrial strategy: reshoring, grid expansion, and workforce redistribution. The next industrial corridor may not follow the interstate between major metros — it may follow fiber lines, power grids, and water infrastructure through rural counties ready to absorb growth.

By blending financial optimization with geographic foresight, executives can turn Opportunity Zones 2.0 into a blueprint for sustainable expansion — one that delivers both shareholder value and national resilience.

The message is simple: the new frontier of U.S. growth is rural, and the Opportunity Zone map is being redrawn.Those who help draw it will own the decade ahead.

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