< Previous26 MAY 2025 SITE SELECTION Economic Instability Economic instability is another big challenge that multinational companies must face with in Latin America. Fluctuating currency values, inflation and political instability can impact real estate investments. In Guatemala, these economic uncertainties were confronted while planning and executing the distribution center project during 2019-2020. The company invested $27 million in the facility, a substantial amount that required careful financial planning and risk management. Economic volatility can affect construction costs, labor expenses and overall project feasibility. Companies must be prepared to adapt to changing economic conditions and develop strategies to mitigate risks. For PepsiCo, this meant ensuring that the distribution center could operate efficiently and sustainably despite potential economic fluctuations. Importance of Sustainability When considering a new project, it is crucial to look beyond return on investment and ensure alignment with the company’s logistics transformation strategy, which aims to enhance customer service levels. This involves generating economic spillover in local communities, improving employee working conditions and achieving sustained business growth. Optimizing logistics conditions to boost customer service and creating sustainable operations by reducing carbon dioxide emissions are essential aspects of this strategy. These were crucial aspects considered in both projects. Sustainability has become a critical focus for multinational companies operating around the globe. The distribution center in Villa Nueva exemplifies the company’s commitment to sustainable practices. The facility received LEED Gold certification for its efforts in promoting sustainability, while the Puebla location has LEED Silver, Distinctive A and Fitwel certifications. These certifications recognize buildings that meet high standards of environmental performance, including energy efficiency, water conservation and waste reduction. PepsiCo’s sustainability initiatives at the facility include the use of energy- efficient lighting, water-saving fixtures and waste management systems. These efforts also contribute to long-term cost savings and operational efficiency. Sustainability is increasingly important for attracting and retaining customers, investors and employees who value corporate responsibility. Strategic Location and Market Access Choosing the right location for real estate development is crucial for multinational companies and can provide connectivity to major highways, allowing companies to efficiently distribute products to markets in Central America and beyond. This strategic positioning enhances the company’s ability to respond to market demands and expand its reach. However, selecting a location that offers both logistical advantages and regulatory compliance can be challenging. Companies must conduct thorough market research and feasibility studies to identify optimal locations for their operations. PepsiCo’s success in Villa Nueva demonstrates the importance of strategic planning and location selection in overcoming real estate development challenges. Real estate development in Latin America presents countless challenges. PepsiCo’s distribution centers in Villa Nueva, Guatemala, and Puebla, Mexico, serve as a valuable case study in overcoming these obstacles and highlight the importance of strategic planning and sustainable practices. By investing in modern infrastructure, complying with local regulations and prioritizing sustainability, multinational companies can achieve long-term success in Latin America’s dynamic real estate market. PepsiCo’s experience underscores the need for adaptability, innovation and commitment to corporate responsibility in navigating the complexities of real estate development in the region. Leandro Rovai is head of Global Knowledge Management within PepsiCo Global Real Estate. PepsiCo’s Puebla Mixing Center in Puebla, Mexico, employs 310 people and will contribute to an increase in the company’s storage capacity with 17,000 pallet positions.28 MAY 2025 SITE SELECTION GROWTH TRAVELS NORTH & SOUTH T ravels along Interstate can take one from the Florida shores of Miami all the way to Michigan’s Upper Peninsula to the waterfront city of Sault Ste. Marie. e ,-mile stretch of I- fl ows directly through Florida, Georgia, Tennessee, Kentucky, Ohio and Michigan, making it a vital transportation route and economic lifeline for businesses and commuters. Site Selection took a look into qualifying projects tracked by the Conway Projects Database from January until March , which gave insight into investment activity taking place on or near the six-state route. e fi ve sectors that saw the most investment activity during this time were Machinery, Equipment & Construction ( projects), Business & Financial Services (), Food & Beverage (), Automotive () and Transportation & Logistics (). Project types were led by distribution warehouse and manufacturing facility investment, followed by offi ce, headquarters and R&D announcements. Of the six states I- runs through, Ohio led in the total number of projects that were announced over the course of the year at projects across counties. Not far behind was Florida with projects across counties. Michigan followed with projects, Kentucky with projects, Georgia with projects and Tennessee with projects. A closer breakdown (map on facing page) shows exactly which counties were pulling in the majority of a state’s project share. Cenovus Energy made a big splash in Ohio during , as the company announced a $. billion investment into both its Lima and Oregon facilities over the next fi ve years. is move comes as Cenovus looks to upgrade facility maintenance, reliability measures and market access projects. e company additionally announced it would be expanding its U.S. regional headquarters in Dublin, Ohio, creating new jobs. “As we continue to grow our business in Ohio, with its strengthening energy sector, keeping our U.S. regional headquarters in Dublin was an obvious choice,” said Cenovus Executive Vice President Downstream Doreen Cole. e company noted the decision to grow its base in Ohio is a result of the state’s strategic location, skilled workforce and strong business environment. In Cincinnati, Medpace broke ground on a $ million upgrade to its Madisonville headquarters campus, representative of one of the city’s largest corporate expansions. Medpace’s investment will introduce a new nine-story offi ce building, a Clinical Pharmacology Unit and a six-story parking garage. Increased space will allow the company to hire an additional , employees at the campus. Welcome to Miami-Dade Whether it’s business or pleasure, I- continues to be a well-traveled route within Florida, running miles from Miami up Florida’s Gulf Coast through Tampa, heading in toward Gainesville before crossing the state line into Valdosta, Georgia. Miami-Dade County’s role in the corridor didn’t arrive until after a approval from the U.S. Secretary of Transportation to extend I- from Tampa, with the fi nal conversion of Alligator Alley to I- not taking place until , completing the highway’s national north-south route. at piecemeal extension was a catalyst for growth in South Florida and remains a vital element today. by ALEXIS ELMORE alexis.elmore@siteselection.com I-75 CORRIDOR The 1,786 miles of I-75 connect the Southeast U.S. to Canada. Getty Images SITE SELECTION MAY 2025 29 “It is a major thoroughfare that is a connectivity opportunity for talent and business,” says Miami-Dade County Economic Development Director James Kohnstamm. “It reaches across the state to the southwestern region of Florida. We have the Big Cypress National Preserve between that separates our communities, but it’s this type of asset that allows us to build business and talent bridges between communities across southern Florida.” The county drew in 62 new and expansion projects from January 2024 to March 2025. The majority of these investments were in Business & Financial Services (23 projects) and Transport & Logistics (10 projects). Businesses coming to the region are largely opening new distribution warehouses, occupying office space or establishing headquarters within the Miami area. “Miami-Dade is a large county from a land mass perspective, but the developer area is relatively small along the coastline, so when it comes to developing sites, we have our limitations,” says Kohnstamm. “The northwest part of the county, accessed by I-75, and south Dade are the areas where there is the most opportunity for development, so that is driving a lot of growth you’re seeing for commercial trade and warehouse developments.” For Kohnstamm, the decision to locate in northwest and south Dade is driven by the talent pipeline that can be accessed via I-75, which connects the county to the larger Miami-Fort Lauderdale- West Palm Beach metro. The tri- county area encompasses over 6.1 million residents, making it Florida’s largest metropolitan area. “The workforce’s ability to commute is driving some of this economic development,” says Kohnstamm. “There’s public transit and other transportation solutions, but it’s really because of the Interstate that we’re competitive in locating business in the northwest Dade community, because they can source talent from our tri-county area.” A recent 2025 U.S. Investor Intentions Survey conducted by CBRE revealed that Miami has been ranked as the No. 2 most attractive market for commercial real estate, behind Dallas, Texas. “Investors are demonstrating a growing interest in Miami and South Florida office properties,” said CBRE Vice Chairman of Capital Markets Christian Lee. “Equity funds are fiercely competing for top-tier assets, while private buyers, both foreign and domestic, remain the deepest source of liquidity. As a result, sales volume and pricing are trending upward, and financing is becoming more accessible, with spreads beginning to tighten.” This insight is bolstered by the city of Miami securing 22 new office investments since 2024 from companies including Verizon Wireless, Sony and Amazon. The post-pandemic push for back-to- office has been a tricky challenge to navigate nationwide, although quality office space has set Miami apart. “We have a fairly strong office market,” says Kohnstamm. “New companies are relocating to the market, others are expanding, and they’re really able to make those investments and see the future because of not only the quality of the facilities that they’re occupying, but the culture that these companies are creating to bring talent back to the office.” Access to I-75 has been a key selling point for economic development officials, and state leadership is keen on ensuring travel runs smoothly. In February 2025, Governor Ron DeSantis and the Florida Department of Transportation announced a new $70 billion investment would be headed toward a number of transportation infrastructure projects, with I-75 primed for a welcomed upgrade as the state’s population grows. As part of the state’s Moving Florida Forward Infrastructure Initiative, new auxiliary lanes will be added in both directions of I-75 in the Ocala region. In addition, the initiative will include reconstruction of the Fruitville Interchange on I-75 in Sarasota into a “Diverging Diamond” design, which will boost capacity by 40,000 vehicles while reducing traffic on and off the Interstate. MIAMI-DADE, FL 62 HILLSBOROUGH, FL 35 HAMILTON, OH 59 HANCOCK, OH 24 WAYNE, MI 30 BUTLER, OH 18 40 MONTGOMERY, OH 22 WARREN, OH 28 OAKLAND, MI BROWARD, FL 31 TOP 10 I-75 COUNTIES BY PROJECTS30 MAY 2025 SITE SELECTION Anchoring Down On New Opportunities T he Puyallup Tribe of Indians received a land settlement of about 140 acres along the Port of Tacoma’s East Blair Waterway in 1990. For over 35 years, this traditional homeland parcel lay dormant, until now. As the ink dries on a freshly signed memorandum of understanding between the Tribe and the Northwest Seaport Alliance (NWSA), an innovative economic development opportunity comes ashore in the very region the Puyallup’s story began. Native to Puget Sound (the nation’s second largest estuarine system) well before Washington’s establishment as a U.S. state, the Puyallup Tribe are known in the Lushootseed language as the puyalepabš, which translate to “people from the bend at the bottom of the river.” The tribe of over 6,000 members will now build upon its rich maritime heritage by breaking into the commercial maritime industry. “It’s about creating sustainable revenue diversification for generations to come, leading by example and hopefully giving other tribes an example that they can follow,” says Puyallup Tribal Enterprises CEO Matt Wadhwani. “It’s really about just activating the assets we have.” A Lasting Legacy For more than three years, the Puyallup Tribal Council and its economic development team have been cultivating a partnership with the NWSA and the Port of Tacoma to explore developing their own pier on a portion of the 140-acre site. “I know what I know, and I know what I don’t know,” Wadhwani says of the insight gained from the partnership. In 2023, the tribe launched its own international logistics company, Tahoma Global Logistics, to operationalize the property and get infrastructure in place while developing jobs and training. The planned 22-acre Puyallup Tribe Terminal, to be positioned directly beside the NWSA’s 19-acre East Blair Terminal 1 (EB1), will increase current pier capacity at the nation’s ninth largest container port, opening potential to gain market share and boost economic activity. Much like EB1, the Puyallup Tribe Terminal will take in breakbulk and roll-on, roll-off cargo such as heavy machinery, construction equipment and automobiles. Wadhwani says one day the tribe will have the ability to expand into containers. Estimated total project cost for the Tribe will be around $200 million. A non-negotiable aspect of this partnership with NSWA was a tribal employment and development program, which will teach members the essential skills needed in a successful maritime environment. “When we do any kind of economic development,” says Wadhwani, “we want to generate revenue, but we also want to create jobs. We want to create jobs for not just tribal members, but the entire community.” The Puyallup Tribe Terminal joins a wave of economic development initiatives coming to life on the tribe’s homeland. The tribe currently operates a marina, a golf course, gas stations, cannabis stores and two Emerald Queen Casino locations in Fife and Tacoma (where a new entertainment complex is in development). The tribe began tapping into new industries following the pandemic. In addition to the launch of Tacoma Global Logistics, the tribe’s economic development activity includes acquiring candy company Ames International; establishing a seaplane dock with Kenmore Air on Ruston Way; partnering with Amazon to open a 520,000-sq.-ft. sorting center in Fife; opening its own construction company, Tahoma Construction Services; and investing in and partnering with Oregon-based battery storage company Skip Technology. by ALEXIS ELMORE alexis.elmore@siteselection.com TRIBAL ECONOMIC DEVELOPMENT The Puyallup Tribe Terminal will be located adjacent to East Blair Terminal 1 in Tacoma. Photo courtesy of the Puyallup Tribe SITE SELECTION MAY 2025 31 Fast Times in Winston-Salem A tobacco-to-tech transition is one part of life sciences innovation in the Carolinas. T hese are exciting times in Winston-Salem, North Carolina. This summer, officials will issue initial RFPs to develop Phase II of the Innovation Quarter, the 330-acre life sciences mecca that has served to transform Winston- Salem from a sleepy, tobacco town into a hub of health innovation that — with a population just north of 250,000 — has come to play in the same league with life sciences powerhouses such as Boston, San Francisco, San Diego and Philadelphia. “Phase II is based off the success we’ve had in pivoting to the life sciences economy and the current Innovation Quarter’s real estate innovation and research growth,” says Jason Kaplan, the IQ’s associate vice president for operations. “We’re about 90% occupied right now, so we’re finding momentum and growth that we need to accommodate, which is what Phase II is all about.” Comprising 28 acres, Phase II calls for 1 million sq. ft. of clinical, lab and office space among 2.7 million gross sq. ft. to span 10 buildings. The concept also intertwines greenspace, retail, restaurants and a projected hotel, as well as 450 residential units. While life sciences opportunities are to predominate, the lifestyle component is considered crucial. “At the end of the day,” says Isaac Perry, the Innovation Quarter’s head by GARY DAUGHTERS editor@siteselection.com HEALTH TECH & LIFE SCIENCES CENTERS A rendering of Phase II of Winston-Salem’s Innovation Quarter Image courtesy of the Innovation QuarterA Thriving Biotech Hub If you’re considering a location for your medical device company, look no further than Vacaville, California. This vibrant city is not only a growing hub for the medical device industry but also offers the perfect blend of resources and affordability that is increasingly hard to find. In the heart of Northern California, a remarkable transformation is underway. Vacaville is rapidly establishing itself as a premier destination for medical device and instrumentation companies, fueled by a vibrant biotech ecosystem and a commitment to innovation. Companies like Mettler-Toledo RAININ thrive in this environment and it’s clear that Vacaville is not just a place to do business—it’s a community designed for growth. A Highly Qualified Workforce The city is home to a dedicated workforce of over 1,300 biotech professionals, ready to contribute their expertise to your organization. Vacaville’s proximity to leading academic institutions, such as UC Davis, UC Berkeley, and Stanford University, means a continuous influx of highly trained graduates equipped to meet the demands of the medical device industry. With access to these top-tier universities, Vacaville benefits from cutting-edge research and a pipeline of talent. These institutions not only provide education but also engage in research collaborations that can support your company’s growth. But that is not the limit to Vacaville’s employment pipeline. Solano College, located in Vacaville, is one of just a few community colleges that offers a four-year degree program with off-ramps along the education journey. What does this mean for your company? Vacaville’s access to talent spans the organizational hierarchy setting partner companies up for success from top to bottom. An Affordable and Vibrant Community Vacaville’s affordability is another key draw for medical device compa- nies. As one of the most cost-effective business communities, it also has attainable housing costs, which offers employees the unique opportunity to live where they work. This proximity enhances quality of life, reduces commute times, and fosters a strong sense of community. Vacaville offers an exceptional quality of life, with a range of amenities that enhance the living experience for employees and their families. From parks and recreational activities to cultural events, there’s something for everyone. Vacaville is more than a place for industry, it is a place to do life. A Supportive Business Environment Vacaville’s leadership is dedicated to fostering a thriving biotech industry. Mayor John Carli notes, “Working with our biotech industry and education partners, we developed a strategy that will bring more biotech companies to Vacaville.” This includes strengthening the Economic Development Department, establishing a Biotech Zone for specialized uses, and launching the Biotech Fast Track program, which guarantees expedited review and approval processes for new ventures. Vacaville boasts over 1 million square feet of available manufactur- ing facilities, making it easy for companies to find the right space for their operations. This robust infrastructure supports both research and manufacturing, enabling seamless transition from concept to production. The combination of space, affordability, and talent positions the city as an ideal locale for companies seeking to expand or relocate. Building a Robust Bio Ecosystem As the City of Vacaville continues to grow and develop its medical device industry, the opportunities for collaboration and innovation are endless. With a comprehensive plan and significant investments in place, Vacaville is positioning itself as the premier location for medical device manufacturing in Northern California’s dynamic life science market. This is your chance to be part of a thriving community committed to your success. Make The Smart Move Choose Vacaville, where access, affordability, and a qualified work- force converge to create a winning formula for growth. Discover why the City of Vacaville is the right choice for your medical device company. Embrace the future of biotech innovation in a community that’s dedicated to your success! Connect with the City of Vacaville https://www.facebook.com/cityofvacaville/ https://www.instagram.com/cityofvacaville/ https://x.com/cityofvacaville https://www.youtube.com/CityofVacaville https://www.linkedin.com/company/city-of-vacaville/ https://www.cityofvacaville.gov/EconomicDevelopment The City of Vacaville Has a Formula For Success ADVERTISEMENT Dia de Los Muertos Celebration Courtesy of Mettler-Toledo RANIN34 MAY 2025 SITE SELECTION of biotech and life science ecosystem development, “the value proposition of Innovation Quarter is that of convening, collaboration and talent, and that will be the central theme for Phase II. The biggest thing on a lot of companies’ minds today is how do they attract and retain workers. So, we’re continuing to build out a vibrant community that attracts those workers and then the businesses behind them. That’s why they’re coming here, staying here and growing here.” A Home for Big and Small The Innovation Quarter, anchored by the Wake Forest University School of Medicine and its Wake Forest Institute for Regenerative Medicine, is one of only nine innovation districts globally recognized by the Global Institute on Innovation Districts, highlighting its significance in advancing life sciences and health care research. The impact on the regional economy has been profound. “Indirect and induced investment into our region as a result of the activities here in the Innovation Quarter was $1.68 billion in 2022, which is pretty tremendous in a community of our size,” says Perry. “On any given day, there’s around 4,000 employees here in the district, around 1,000 degree- seeking students and around 120 companies.” Partners within the quarter include globally recognized businesses such as Atrium Health, Ricoh, Panasonic Health Corporation and Javara. Advocate Health oversees real estate and ecosystem growth in collaboration with Wexford Science and Technology. That said, big health isn’t necessarily the Innovation Quarter’s sweet spot. “We have a lot of companies that may be recognizable,” says Kaplan, “but we really are a place for the startup and entrepreneurial, future innovators, future entrepreneurs, future companies that will be based here in Winston-Salem that will grow and “Convening, collaboration and talent” are the touchstones of Phase II. Image courtesy of the Innovation QuarterNext >