Keeping it steel: industrial building materials

Steel background

As the price of steel rises, will warehouse developers and investors have to consider alternative building materials?

Michael Hardman, a director in Colliers International’s project and building consultancy team, estimates that a typical portal steel frame accounts for about 20% to 23% of the cost of an industrial warehouse and, of that slice, the steel itself makes up about 30% to 40% with the rest attributable to fabrication, fire protection and erection costs.

So, given the rising price of steel, should developers and investors in the cost-conscious warehouse sector branch out and consider other materials?

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