2 SEPTEMBER 2018 SI T E S E L E C T IO NCONTENTSSeptember 2018T H E M A G A Z I N E O F C O R P O R A TE R E AL E S T A TE S TR A TEG Y A N D E C ONOM I C D E V E L OP M E N Tt FEATURES 26 EDS & MEDSHow university and hospital synergies and districts are driving urban economic development. 102 TOP UTILITIESThe Class of 2018 has been busy working on more than capital investment attraction in the past year, though they excelled at that. Hurricane recovery and grid modernization were also priorities.Utilities Directory . . . . . . . . . . 120V O L U M E 6 3 , N U M B E R 5t COVER STORYCover design by Negin MomtazThe inaugural Global Groundwork Index ranks the areas where infrastructure projects and corporate investment are in sync.2018InfrastructureReport 77 LOGISTICS & DISTRIBUTIONA blueprint for the flexible industrial distribution network of the future. 94 TRANSIT & CONNECTIVITYThe value of transit-oriented development in attracting talent and creating jobs is overwhelming, according to an urban planning expert. 98 RURAL ADVANTAGEA federal infrastructure loan program will boost smart grid and other initiatives across 14 states.p.50 S I T E S E L E C T I O N SEPTEMBER 2018 3FOLLOW US!s i t e s e l e c t i on . co m ▼ INVESTMENT PROFILES 13 SAN BERNARDINO COUNTY, CALIFORNIA 22 BUSINESS BIRMINGHAM, UK 36 JUNCTION CITY, KANSAS 45 DELAWARE 118 CONSUMERS ENERGY 124 HOOSIER ENERGY 128 CORSICANA, TEXAS 202 CENTRAL NEW MEXICO RAIL PARK ▼ DEPARTMENTS 4 EDITOR'S VIEW: Tales from the Cryptocurrency 215 INDEX TO ADVERTISERS 6 IAMC INSIDER: A letter from the Chair; best practices in crafting master service agreements. Site Selection is the of cial publication of the Industrial Asset Management Council. ▼ SPECIAL ADVERTISING SECTION 209 MILITARY & DEFENSE▼ INTERNATIONAL UPDATE 18 NORTH AMERICAN REPORTSVancouver, Washington, port invests in freight-rail infrastructure; Duke Realty relocates in Indiana; Holland, Michigan, gains an automation manufacturer; where a GlassBarge is on tour. 20 UNITED KINGDOM Headquarters and creative hubs come into focus. 24 WORLD REPORTSMalaysia aerospace site adds a logistics warehouse; China passes the U.S. in manufacturing output; U.S., Singapore are tops in autonomous vehicles; an Arctic Circle research center expands. 28 CANADA’S BEST LOCATIONSThe 2018 Canadian Competitiveness Rankings include the top three provinces and top 10 metro-level economic development agencies.Directory of Canada’s Economic Developers. . . . . . . 38▼ AREA SPOTLIGHTS 126 SOUTHEASTAtlanta will add a landmark skyscraper, but not where you would expect it to be. 130 TEXASCryptocurrency mining operations are no longer unique to China. Texas is the new battleground, and the state’s secret weapon is in Plano. 148 CALIFORNIAElectric vehicle production is booming in Southern California thanks to its talent base, public policies and market demand. 160 NEVADAThe Las Vegas region’s young workforce has much more on its mind than the gaming industry. 165 NORTH CAROLINAA survey of state businesses reveals the challenges facing workforce development agencies. 168 MASSACHUSETTSTextiles and robotics are among the sectors bene ting from new state R&D funding. 170 MISSOURINewly installed Gov. Mike Parson outlines his plans for a new economic development agenda. 174 MID-ATLANTICA closer look at these states’ business climate attributes. 180 PENNSYLVANIAMarcellus Shale makes Pittsburgh International an airport on a mission; shale’s signi cance to the Keystone State has yet to be quanti ed. 189 UPPER MIDWESTBuilding materials manufacturers’ expansions point to pockets of economic growth.ALBUQUERQUE INTELLIGENCE REPORT193ALBUQUERQUE INTELLIGENCE REPORT4 SEPTEMBER 2018 SI T E S E L E C T IO NEDIT OR’S VIEWTales from the CryptocurrencyMEMBERSite Selection (ISSN: 1080-7799) (USPS ), September, 2018, volume 63 number 5. Published six times a year in January, March, May, July, September and November by Conway, Inc., 6625 The Corners Parkway, Suite 200, Peachtree Corners, GA 30092 USA. Periodical postage paid at Peachtree Corners, Georgia, and additional mailing offices. Single issue: $20 plus shipping. Annual subscription: $95 in the United States; $135 to non U.S. addresses. PRINTED IN USA. POSTMASTER: Send address changes to Site Selection, 6625 The Corners Parkway, Suite 200, Peachtree Corners, GA 30092 USA.©2018 CONWAY, INC.BRAND REPORT CEO LAURA LYNE President & Publisher ADAM JONES-KELLEY Executive Vice President RONALD J. STARNER VP of Publications & Editor in Chief MARK AREND Managing Editor ADAM BRUNS Senior Editor GARY DAUGHTERS Managing Editor of Custom Content SAVANNAH KING Art Director SCOTT LARSEN Production Coordinator/Designer BOB GRAVLEE Lead Designers SEAN SCANTLAND, RICHARD NENOFF, NEGIN MOMTAZ Junior Graphic Designer JONATHAN THERRELL Editorial Database Manager KAREN MEDERNACH Research Associates SPENCER BAUER, BRIAN ESPINOZA McKENZIE WRIGHTG L O B A L SA L E S & M ARK E TIN G Vice President of Sales CHARLES FITZGIBBON Vice Pres., Global Innovation GUILLERMO MAZIER Vice Pres. of Corporate Development PAUL TARRANTS Regional Director — Northeast US MIKE GLENNON Regional Director — Midwest US CATHY McFARLAND Regional Director — Southeast US HARRY NEILL Regional Director — Western US PAUL NEWMAN Regional Director — US MARGARET ROSE Regional Director KRISTIN PICKETT Global Director POLLYANNA TOWNSEND-ROSE Canada GREG SMITH & DAVID SEABERG, 705-484-0331 Mexico ANA ARROYO, (52-55) 2455-3971 Brazil FABIO YUKIO YAMADA, +5511 3044 4848 Central America BOBBY PEREIRA, +507 6673 1160 China DRAGO NAPOTNIK, +86 151 2117 2762 JOLIN FENG, +86 151 2116 3435 Germany OLIVER OBERMANN, +49 (0) 341 90 97 90 00 Poland KATHARINA ARNOLD ROKITA, +49 (0) 176 1030 5508; +48 (0) 660 178 134 Japan HIROKO MINATO, +81 50 8882 3456 Korea CHUL LEE, +82 2 466 5595 Malaysia Y.T. SIA, +603 56110101; +6011 10108909 Nigeria CHRIS ENYI, +234 1 803 331 8635 Thailand JANYA LIMMANEE +66 81 647 0121 Marketing Assistant CATHIE WENDT Client Services Manager BRIAN WATSON Marketing Manager STEPHANY GASPARD Staff Photographer SHAY LA’VEEB U S IN E S S D E PAR TM E N T Chief Financial Officer DEBBIE PORTERCI RCU L ATIO N Circulation Manager JULIE CLARKE DIG ITA L TECH N O L O GY TE AM Webmaster BEN YAWN Director of Programming & Analytics DANIEL BOYER Senior Programmer RENATO BYRRO IT Coordinator MARK BERTRAMThe publishers believe that the information contained in this publication is accurate. However, the in formation is not war ranted, and neither Conway, Inc., nor the Industrial Asset Management Council, assumes any liability or responsibility for actual, consequential or incidental damages re sulting from inaccurate or erroneous information. Site Selection incorporates Industrial Development.PHONE: (770) 446-6996 FAX: (770) 263-8825 TOLL FREE: (800) 554-5686EMAIL: editor@conway.com WEB: www.siteselection.comes, I had heard of bitcoin a few years ago, even if I couldn’t use it properly in a sentence. But I couldn’t have told you then that in 2018 we would have a major article on “industrial-scale cryptocurrency mining” with references to things like “hashing power for the Bitcoin blockchain.” It’s the Texas article in this issue, and it’s very much a corporate real estate article — and much more. Senior Editor Gary Daughters expertly captures the potential of this nascent technology and the strategic role location plays in where it is produced. Another new term to acquaint yourself with is the Global Groundwork Index — a new location ranking created by Managing Editor Adam Bruns and Director of Programming & Analytics Daniel Boyer that blends infrastructure projects tracked by CG/LA, whose president, Norman Anderson, contributes to the Infrastructure Report; and capital investment projects from our own Conway Projects Database. What does the index measure? The territories where crucial infrastructure is already making an impact on doing business and quality of life, the cover story explains. This new index will be the centerpiece of our annual infrastructure coverage going forward.Nothing bitcoin-related appears on a list of topics readers want to see more coverage of, according to our recently completed reader survey. But I bet it will in future years, when cryptocurrency is the coin of the realm. Several topics do appear on the list: economic incentive modeling, resilience strategies, climate change implications, relocation and redevelopment costs and more case studies. One respondent suggested a case study on relationships between zoning criteria and general plan designations on various sites. Too limited an audience for that? We’ll see. More than half the respondents told us to keep doing what we’re doing, so we’re on the right track.Other survey findings: The print version is by far the preferred content format — that’s according to 86 percent of respondents. Reports of print’s death are greatly exaggerated. Asked how they apply our content day to day, one reader is a college professor and textbook author who uses Site Selection in those contexts. Another cited instances of adding locations featured in investment profiles to their site searches. Nearly half plan facility expansions in the next three years, and for the first time in recent years, the Western U.S. is tied with the Southeast as the likely destination for their capital investment. The Midwest is close behind.This is the issue in which you’ll find our annual Canada’s Best Locations and Top Utilities coverage, so there is September issue content you’re more familiar with in addition to the crypto-content. Enjoy it all and let us know in future surveys how you are putting it to use.Till next time,Mark Arend, Editor in ChiefY6 SEPTEMBER 2018 SI T E S E L E C T IO Nwww.iamc.org2017-2018 IAMCBOARD OF DIRECTORSinsider September 2018ChairMark EichkornPenske Corp.Vice ChairCharles WaltzBASF Corp.TreasurerColleen CaravatiCorning Inc.SecretaryJennifer RothBimbo Bakeries USA, Inc.Past ChairRussell BurtonPepsiCo, Inc.Paul Bouschard Kohler Co.Scott CameronSonocoKevin DollhopfHanesbrands, Inc.Julie DowLockheed Martin Corp.Don HansenW. W. GraingerDeb HeffnerGreater Reading Economic PartnershipWilliam M. JenkinsThermo Fisher Scientific Inc.Patricia J. LoveallKidder MathewsAshley SnyderCresaAllison ThompsonCedar Hill Economic Dev. Corp.Executive DirectorJ. Tate Godfrey, CEcDAs professionals in the year 2018, we can feel an urgency about keeping our professional skills up to date. The corporate real estate and facilities management fields are advancing at a fast and accelerating pace. Today, I could not do my job with the knowledge base I had five years ago.Let’s look at what experts say about this process. According to a study by Oxford Economics, a survey of thousands of U.S. workers found that the typical respondent believes half of her/his skills become obsolete every three years and their companies are not geared up to provide this training. Another big change factor is the application of increasingly capable artificial intelligence (AI) to automate some real estate tasks. Industry literature on commercial real estate is rife with discussion of how it will be affected by AI. Michael Beckerman writes in a recent CRETech blog, “I think that the areas that tech will be the most impactful in the short-term will be HOW we work, with AI taking over many of the manual tasks, such as research, data, analytics, marketing, communications and more. This is also going to have a pretty significant impact on jobs in the commercial real estate industry.”Such changes in commercial real estate will have important impacts on corporate real estate. The two are tightly integrated. Change is under way, and it‘s normal in business. Where will you go to find the professional education and networking resources to keep you up to date? I believe IAMC is an important part of the answer. One of IAMC’s strategic value propositions has been and will continue to be enhancing your career. We offer some great programs and tools and strategies to help you:• The Sunday Forum Leadership Development programs receive high marks from participants and will undoubtingly sharpen your managerial skills.• Technical Webinars, white papers and Forum CRE professional development workshops can update your technical skills. • A key new resource to all of us is Cornerstone, our recently launched online portal, through which members can access IAMC’s knowledge center, discussion boards and on-line communities.I urge you to take full advantage of your membership to boost your career. Attend, explore and participate! The bottom line is this: Think of IAMC as another vehicle to help you accelerate your career growth. Best regards,Mark EichkornChair, IAMC Board of DirectorsThe Challenge of Keeping UpMark Your Calendar …Next >