COLUMBIA, MD-Maryland, like so many states, has its eye on 3D printing--a technology that has proven more than capable of promoting and growing regional businesses through additive manufacturing. The question is, though, will a widespread adoption of 3D technology erode what is one of the region's top-performing commercial real estate sectors—the industrial and warehouse asset classes?

That question will play out in Maryland in the coming years (spoiler: actually 3D will have the opposite effect) with the state'd debute of 3D Maryland, a program designed to encourage development of this technology in the local manufacturing economy. It is an initiative of the Howard County Economic Development Authority and the Maryland Center for Entrepreneurship and funded through a grant from Howard County.

The print lab will be located in the Maryland Center for Entrepreneurship and will house several desktop and larger production-type 3D printers.

3D manufacturing has become a subject of intense community in the manufacturing community, alongside the hot topic of manufacturing returning to US shores. Indeed, there is some overlap of the two topics. Maryland has been following the debate and unfolding technologies with keen interest--the state has the dubious distinction of having one of the nation's steepest job losses in the manufacturing sector. The state has lost 25,000 manufacturing jobs, or nearly 20% of its base, according to a Baltimore Sun analysis since August 2007—nor has it enjoyed the manufacturing rebound many other states experienced when the recession ended.

3D, or three-dimensional printing, allows even small-scale or family operators to establish a manufacturing operation that customizes products in a reasonable amount of time and cost. When and if it is widely adopted it has the potential to significantly disrupt current manufacturing, supply chain, transportation and warehouse operations.

For the real estate community, at least in Maryland, this may not seem like good news given that the industrial sector is doing quite well and in no need of "disruption."

But think again: a report from Jones Lang LaSalle earlier this year explores the many opportunities that a robust 3D manufacturing industry could have for industrial real estate.

3D printing will "change the nature of factories in certain industries," according to Jon Sleeman, director of EMEA Logistics & Industrial Research at JLL. "Instead of large bespoke factories, it will create demand for more standard small and medium sized buildings, which companies would be more likely to lease than own."

"As a result, this will open up opportunities for developers and investors."

Sleeman also noted that an evolving manufacturing sector drives demand for a range of real estate "including R&D facilities, which are often co-located with production, and logistics facilities which support manufacturing." JLL figures show that over the past five years, from 2008 to 2012, manufacturing companies directly accounted for 16% of the total take-up of logistics real estate across 11 major European countries, "highlighting the significance of manufacturing as a source of logistics property demand."

For real estate executives--and manufacturing executives for that matter--not convinced 3D would be beneficial to the sector, there's time. The technology is still in its infancy and these trends will take years to fully play out.

Instant Insights /

Maryland Eyes Manufacturing, Real Estate Boost from 3D

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