OAK BROOK, IL-Most developers are bemoaning the rising costs of building materials, and CenterPoint Properties Trust president and chief executive officer Michael Mullen notes they have added $2 per sf to the cost of creating an industrial asset. However, steel, concrete, roof insulation and rebar are hardly the biggest drivers of rising development costs, he notes.

The price of land has doubled in the last two or three years in some submarkets, CenterPoint Properties Trust officials say. “Land prices are escalating at a much brisker clip,” Mullen says.

Given the REIT’s size, CenterPoint Properties Trust has not had problems getting building supplies, as other smaller developers have encountered. Meanwhile, Mullen notes the company has a supply of 3,100 acres. CenterPoint Properties Trust plans to build $1 billion worth of buildings over the next 10 years, adds co-chairman John S. Gates. “He who controls the land controls the deal,” Mullen says.

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