The Edge - Volume One

tobacco, wheat and corn. However, the impact on other vegetables, fruits and flowers is likely to be quite significant. From a real estate perspective, this trend has barely begun to move the needle in terms of vacancy levels or rents. We expect indoor cropping operations to be a major growth industry in the years ahead. Because the goods indoor cropping produces don’t have as long of a journey to the end user as traditional methods, transportation costs will be reduced and pricing for consumers will be impacted positively, especially as these operations build scale. Meanwhile, the positive ecological impact of urban farming will also make the method popular with eco- conscious consumers.

Smaller scale innovations like tower gardens (vertical aeroponic growing systems) allow room for growing as many as 20 plants in less than three square feet. At Chicago’s O’Hare Airport, 26 existing tower gardens are now providing lettuces, basil, cilantro, chives and other products for the dozens of airport-based restaurant operators on the premise, estimated to serve more than 10,000 people daily. While any crop can be produced using indoor cropping methods, according to Agrilyst, the most common crops currently grown indoors are greens, microgreens, herbs, vine crops, some fruits, flowers and nursery crops. Less common, but on the rise, are tubers, mushrooms, hops, algae and commodity crops. Looking forward, most analysts don’t see the indoor cropping movement having a significant impact in the immediate future on often heavily-subsidized commodity crops like

We expect urban farming and indoor cropping operators to be increasingly active in the market. Their impact will first be felt with obsolete industrial inventory. That said, the trend is not limited to industrial properties alone. From the perspective of adaptive reuse options, urban farming could play a role in the repositioning of any property type, and it is likely that both old manufacturing buildings and defunct shopping centers will be the first product types within the adaptive reuse category to see the affects. Eventually, as the trend of urban farming continues to flourish and further expand, there will be a tangible impact on the existing food supply and distribution chain. This won’t happen until cities become self-sufficient in terms of farming, and this process will take years if not decades – but it holds the promise of radical disruption.

GARRICK H.S. BROWN Vice President Retail Intelligence garrick.brown@cushwake.com

JOEY BLAND Vice President

Cushman & Wakefield Commercial Advisors Farmland Advisors jbland@commadv.com

BAS OLDENBURG Associate Director Global Occupier Services Amsterdam bas.oldenburg@cushwake.com

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