heights and lots of trailer and car parking . And while there is a need for some smaller last-mile facilities within cities , many users need big-box facilities that start at a minimum of 500,000 sf and reach 1 million sf or larger . That means industrial developers and contractors need to build facilities on large sites , typically in suburban or exurban locations .
The more the demand accelerates , the better underutilized golf courses look . Before the current jump in industrial demand , golf courses were not necessarily considered good sites for industrial development . The locations are complex , often with environmental and conservation issues — many have significant wetland / floodplain restrictions which create headaches for site planning . Rezoning is typically the largest hurdle to overcome for industrial developers . For instance , the three golf courses in Orland Park , Ill ., are Silver Lakes ( E-1 estate residential ), White Mountain ( BIZ general business ) and Crystal Tree ( R-1 & R-3 residential ). To change the zoning to an approved commercial use , developers will have to go through zoning board and village board approval , each requiring a process with public hearing meetings — and that means being prepared to persuade some angry residents who do not want warehouses in their neighborhoods .
Amazon , for example , used to shy away from golf courses because they required too much extra effort to develop . But as the need for industrial space has exploded , users and developers are willing to take a second look . Amazon now has developed several courses for warehouse and distribution facilities , including the former Skyland Pines Golf Course , an 18-hole course , banquet center , and driving range in Canton , Ohio , off U . S . Route 62 and Columbus Road , where Amazon will have a 1 million-sf warehouse . Another example is a 634,00-sf fulfillment center being built on the former Pine Lakes Golf Course in Alcoa , Tenn .
Courses near my firm in suburban Chicago that are being sold or have been sold for development include the golf course at Pheasant Run Resort in St . Charles , Ill ., about 40 miles west of Chicago , and Lansing Country Club in Lansing , Ill . Several other Chicago-area courses are now being marketed specifically for residential redevelopment , including Silver Lake Country Club in Orland Park and Big Run Golf Club in Lockport .
Without question , while some municipalities welcome the jobs and taxes that warehouses bring , not all communities are welcoming golf course conversions with open arms . For example , in Illinois , the Village of Homewood has been locked in a years-long battle around the fate of the Calumet Country Club Golf Course , established in 1901 and annexed to Homewood in 1980 . The course had been financially troubled for many years before being sold to a developer , who wants to use it for an 800,000-sf distribution facility . Village officials and angry residents have locked horns at many contentious meetings , and the future of the site is currently unclear . Industrial sites introduce truck traffic , noise , and pollution , so not everyone is willing to trade that for same-day deliveries . But the promise of job opportunities and greater tax revenue for public improvements can be hard to turn down for cash-strapped municipalities .
Consumers are predicted to increase their online shopping habits , and retailers who want to compete need to match the delivery speeds of Amazon , Walmart , and Target , so the need for warehouse and distribution space will continue to grow . More places will see the fenced-in 175-acre green space in their community — once a spot for a day on the links — give way to big-box warehouses that are the stopping points for the groceries , electronics , and furniture that customers want at ever-increasing speeds .
Chris Gary Executive Vice President with NAI Hiffman
CIREMAGAZINE . COM COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE 15