If We Develop It

The latest report from the CBRE Buffalo office sets industrial vacancy rates at a record-low, 4.5%. On the plus side, we can celebrate the fact that there is growing interest in relocating or expanding a business in Buffalo Niagara.  On the minus side, our inventory of existing commercial real estate, especially in the industrial market, is shrinking.  Large, modern, open facilities with high ceilings and other industrial amenities are difficult to identify in any western New York market. Now is the time for local developers to turn their attention to this pressing lack of industrial inventory.

Spec space can be challenging and partially leased space has been difficult to impossible to finance since the recession. While spec space can be a risky and costly endeavor, properly done, it could benefit both the developer and the Buffalo-Niagara region.

Preparing an industrial site for development can take months, maybe years. This means looking both within, and beyond, the city limits, identifying potential parcels that will suit a manufacturing business’s substantial needs — like access to transportation, low cost power, water, parking and more.

The recent spotlight on Buffalo Niagara has led to even more attention from site selectors. Thanks to our industrial past, there is an available and affordable workforce, attractive to out-of-market manufacturers. But without the real estate, our region is going to miss out on golden opportunities that translate to jobs lost for both younger and older workers.

by Steve Blake, CCIM  Partner, CBRE|Buffalo

 

It’s Happening Now! Check out the New Buffalo

This short video (Paget Films) shows some of Buffalo Niagara’s newest developments and captures the region’s momentum and energy. Nice job Western New York Regional Council and ESDC. Check it out!

When it Comes to High Tech, Buffalo Manufacturing Works

While not the flashiest of Governor Cuomo’s Buffalo Billion initiatives, Buffalo Manufacturing Works has the potential to be one of the most effectual of them all. Originally dubbed the Buffalo Niagara Advanced Manufacturing Institute, Buffalo Manufacturing Works will soon become a pillar of the region’s manufacturing sector, providing technology solutions to companies across the industry through world-class engineering support, research and design, training and strategic services. Over the next five years, $45 million will be invested in facilities, equipment and engineering staff creating a state-of-the-art institution for the benefit of WNY manufacturers.

Perhaps my favorite aspect of Buffalo Manufacturing Works is that it creates a major new asset for existing WNY manufacturers while simultaneously creating an incentive for BNE to market to potential attraction targets. In an era where companies across the board are cutting back on research and development budget lines, the opportunity to leverage this great asset will be a significant draw for growing manufacturing firms. Few other locations provide companies with such an advantage.

Resulting from several in-depth focus groups and research, three primary technology areas will dominate Buffalo Manufacturing Works: flexible automation, materials and testing, and processing and fabrication. Columbus, Ohio-based EWI, North America’s leading engineering and technology organization, will operate the institute. The member-driven not-for-profit was selected to operate the Buffalo initiative based on its 30 years of success in central Ohio. Three additional key local partners are involved: the University at Buffalo providing access to early-stage fundamental research and academic facilities; Insyte Consulting assisting with improvements to process and operational productivity; and the World Trade Center Buffalo Niagara helping companies identify new markets and export opportunities.

As manufacturing shifts ever more towards highly technical and advanced practices, this investment will prove integral in continuing the Buffalo Niagara region’s great legacy as a nucleus of manufacturing innovation.

Click here to read more Buffalo Manufacturing Works from the Buffalo News.

by Alan Rosenhoch, Business Development Manager

Mapping Downtown Buffalo’s Development

by Christopher Finn, Research Manager

In the years ahead, 2014 will be viewed as a milestone in Buffalo’s history.

-The year that development plans and proposals turned to cranes and steel.

-The year that saw the commencement or continued construction of projects that altered the future of the western New York region.Buffalo, NY Development on the Rise!

These projects were not achieved by happenstance, but through decades of hard work and persistence from local stakeholders, built from the foundation of other significant development ventures that came before.

From Buffalo Billion Initiatives, (eg – High Tech Park @ Riverbend and IBM’s announcement) to HARBORcenter; from the University at Buffalo’s Medical School to Canalside, Buffalo’s development is occurring organically and with great diversity.

Our future is now and it’s the culmination of a development strategy rooted in unprecedented cooperation between public and private entities, community organizations and every level of government.

In an effort to chronicle this momentum, Buffalo Niagara Enterprise has updated our downtown developments maps. We consider this an ongoing effort, with updates occurring regularly, so input is always welcome. Please do not hesitate to contact me directly with observations, additions, or edits.

STATUS, Downtown Buffalo Development Projects (Completed, Under Construction and Proposed)

TYPE, Downtown Buffalo Development Projects (Medical/Medical R&D, Mixed Use, Office, Other, Residential and Tourism/Hospitality)

Connect with BNE at Trade Events

by Tony Kurdziel, Business Development Manager

BNE’s 2014 travel schedule is already in full swing, with each trip carefully planned around our industry attraction strategy. Thus far, we have already exhibited at the Canadian Home Furnishing Market Trade Show (http://www.tchfm.com/) held at The International Centre in Mississauga, Ontario, and featured hundreds of manufacturers and distributors from across North America. We participated in this as part of business development/networking event that the American Chamber of Commerce in Canada (Halton Peel Chapter) coordinated. Many thanks to those folks for inviting us to their event.

In the next several weeks, BNE’s Business Development team will be increasing our travel as the trade show industry emerges from its winter lull. There is great deal of research that goes into researching and selecting these shows, followed by more effort to schedule appointments with attendees at each show. We also try to maximize the downtime before and after trade shows by meeting with site consultants and real estate brokers that work in our market but do not have an office presence here. It is an efficient way for us to keep Buffalo Niagara “top of mind” with key service providers and influencers across North America.

Here is a partial list of the shows we will be attending in the upcoming months:

If anyone would like to connect with BNE prior to- or at – these shows, simply reach out to me, Alan Rosenhoch or Carolyn Powell.

Top 10 Reasons Canadian Businesses Expand to Buffalo Niagara

Since 2000, BNE has helped more than 60 Canadian companies expand their business to Buffalo Niagara. Each of these companies was unique and had their own reasons why they wanted to enter the U.S. market however there were certainly some common themes. See the following infographic for the top ten reasons Canadian companies expanded here:
Buffalo Niagara Can Jan2014

Are You Right for Buffalo? Thank you!

So many people were generous with their locations and time in the making of Are You Right for Buffalo? Thank you for your help promoting Buffalo:

John Paget and fabulous crew of Paget Films, Block Club, Larkin Square, Buffalo Harbor Kayak, WNYBAC, Sun Restaurant, Healthy Zone Rink, Anchor Bar, Lexington Co-op, Liberty Hound, Canalside, Tabree, Bistro Europa, Megan Norris, Erin Habes, Bonnie Jean Taylor (wonderful host), Seamus (the wingman), and Chuck and Bill Banas the “twins”…Thanks so much to all!

Buffalo’s Top Projects, Ranked by Investment

Info graphic. The top 10 development projects in downtown Buffalo, NY (proposed, under construction and completed) ranked by investment totals an impressive $1,709,000,000.

  • 4 currently under construction, 4 recently completed, 2 more proposed/moving forward
  • Top 3 are located on the Buffalo Niagara Medical Campus (BNMC); remaining are throughout downtown Buffalo
  • Represent a good mix of uses such as medical, tourism/hospitality, federal , office and mixed use

Buffalo Niagara Development dec2013

From Rusty to Radiant: Buffalo’s Transformation

Read Buffalo Niagara’s story as recently featured in TrustBelt, a platform that focuses on telling the story of the economic resurgence of the Greater Midwest Region of the USA.

Buffalo, NY Photograph by Douglas Levere

Buffalo, NY Photograph by Douglas Levere

From Rusty to Radiant

Silver bullets don’t bring shine back – but years of hard work can, and nowhere is this more evident than in Buffalo Niagara. Here, a spirit of collaboration emanates from a shared vision, with strategic goals for business and community development that are fueled by wind, water and more than $8.1 billion in public and private investment over the last five years.

A new Buffalo Niagara is rapidly taking shape: It’s a region enjoying success today and positioned for long-term growth tomorrow in advanced manufacturing, life sciences and biotechnologies, finance, education, advanced agriculture – all within one of the most affordable and enjoyable regions of the country.

A Vision for the Future, Realized Today

A driving force behind the region’s remarkable resurgence has been the Buffalo Niagara Medical Campus (BNMC). Conceived in 2003 with a 20-year master plan focused on bioinformatics, life sciences, clinical care, innovation, and research, the BNMC’s goals were achieved in only eight years – thanks to collaborative public-private partnerships supported by essential seed funding and streamlined processes to get new projects off the ground.

As a result, state-of-the-art, multidisciplinary entities are having a tremendous impact on Buffalo Niagara’s economy:

  • more than $1.5 billion invested, including the relocation of the highly ranked University at Buffalo medical school to the BNMC
  • 5,000 jobs created or relocated to this innovation hub since 2003
  • another 5,000-7,000 more jobs expected in the next five years

A More Diversified Region, a More Secure Future

While the success of the BNMC has been unprecedented, Buffalo Niagara’s business, government, education, non-profit and philanthropic leaders learned long ago that economic diversification is critical for sustained strength. That’s why Buffalo Niagara’s growth isn’t limited to one economic engine. Instead, a high level of creative cooperation is resulting in a total evolution of the region’s economy, with another $1.5 billion in projects underway in the City of Buffalo’s central business district and the waterfront.

From California’s Silicon Valley to Canada, and from life sciences technology to shipping, businesses like Geico, Yahoo, Greenpac, Welded Tube of Canada, and Alpina are relocating and expanding here because Buffalo Niagara offers everything they need to succeed: a skilled and dedicated workforce, highly competitive commercial and industrial real estate costs, low-cost energy, research and development partnerships, proximity to numerous major North American cities and a vast transportation network for imports, exports and cross-continental shipping. The region also offers reasonable business development costs and easy access to major markets like New York, Chicago, Boston and Toronto without the hassles or high costs of locating in major metropolitan areas.

The region’s slow-but-steady growth over the last decade also meant that while other areas experienced “boom and bust” economies, Buffalo Niagara’s housing market continued to strengthen and our employment rates remained stable. In addition, our strong bi-national business ties and our proximity to Canada’s largest city benefited our region in everything from retail to restaurants to manufacturing.

And, thanks to Buffalo Niagara’s geography – within the largest freshwater basin in the world and surrounded by two Great Lakes and the mighty Niagara River – the region is uniquely positioned to support forward-looking energy production, like wind and solar energy, and to supply inexpensive hydroelectric power to new and expanding manufacturers in Buffalo Niagara.

Growth Fueled by State-Level Support

In 2012, New York State pledged $1 billion in state funding for growth in key industries and to leverage an additional $5 billion in private investment. This unprecedented state commitment to the continued revitalization of the western New York economy means that new and relocating businesses get the support they need for companies to take root and grow. Investments from the “Buffalo Billion” are decided through collaborations like the Western New York Regional Economic Development Council, with input from the Buffalo Niagara Enterprise (BNE) and other partners and will continue to be for several years to come.

Further fueling this growth is the Start-Up NY initiative, in which businesses opening or expanding in select economic development zones – determined largely by proximity to New York’s remarkable higher education institutions – operate tax-free for 10 years, offering extraordinary opportunities for partnerships between Buffalo Niagara’s numerous colleges and universities and business. Continue reading