Multifamily developer expands to commercial projects

By Jeffrey Steele | Construction DIVE

Dive Brief:
Responding to the surging demand for warehouse, logistics and distribution space across the U.S., Scottsdale, Arizona-based Alliance Residential Company has launched a new commercial-focused platform.

The company expects to use the same approach to building the industrial platform as it did its residential model, founded in 2001 and now operating in 26 cities. It will recruit experts who know the industrial development marketplace in their specific regions to grow the new company organically, CEO Cyrus Bahrami told Construction Dive.

The Alliance Industrial Company launch will afford the firm greater flexibility as it determines which land parcels to acquire. Because expansion of logistics and distribution often occurs in the same areas as residential growth, Alliance could choose to acquire parcels and subdivide them between residential and industrial, Bahrami said.

Dive Insight:
In the current hot housing market, it’s not unusual for commercial builders to tap into the growing demand for residential work, but Alliance is doing the opposite by moving from residential work into commercial. It’s no secret e-commerce as a percentage of national retail sales continues growing at a tremendous rate. According to eMarketer, e-commerce sales are expected to more than double from 11% in 2019 to 23.6% in 2025.

“There’s a huge demand for logistical warehouse and distribution space that backstops the e-commerce product,” Bahrami said. “That’s why we’re getting in.”

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