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- 🪵 Mass Timber: Building ✌️Better, 🏃Faster, & 💪Stronger
🪵 Mass Timber: Building ✌️Better, 🏃Faster, & 💪Stronger
Ben Apple
March 28, 2023
Hi friends - I'd like to extend a special welcome to the new subscribers this week.
As this is a new and growing newsletter that breaks down a new real estate trend every week, I'd love to hear feedback on what you'd like to see in future trend breakdowns.
Please drop a reply to this email or click the feedback form at the bottom to help me better meet the needs of this growing community!
Okay, on to this week's trend breakdown.
Here’s what you will learn in today’s email:
Why should you build or invest in mass timber?
How is it better than traditional building methods?
Is it profitable to build with mass timber?
What are some successful examples?
And more!
👉 Problem
About 11% of global carbon emissions come from the building industry, mostly concrete and steel. Sustainable building materials are needed to reduce the impact.
⚡ Big Idea
People have been building with wood for thousands of years, but until recently, there was always a limit to what could be built.
Engineered wood products developed in the 1990's now allow us to build taller and more complex structures.
Mass timber, an engineered wood product, is created by binding together layers of wood. There are several types of mass timber products, including cross-laminated timber (CLT), glue-laminated timber (GLT or glulam), and nail-laminated timer (NLT). These products are strong, lightweight, durable, and sustainable.
Another benefit of mass timber is the speed at which you can build. Built off-site, mass timber products are delivered and assembled on site, resulting in faster building timelines and safer sites.
📊 Charts and Data
An estimated 1,300 mass timber buildings have been built in the US and there is a growing pipeline of projects as cities, designers, and builders learn more about building with mass timber.
North American Mass Timber Report
The global mass timber market exceeded $1B and is expected to more than double by 2027.
Europe has been the leader of mass timber, and residential has been the most popular use.
These trends are expected to change dramatically as the North American and Asian markets grow and more commercial buildings are built.
Let's look at the carbon emissions of engineered wood vs. concrete and steel, traditional building materials for large commercial projects.
With significantly less carbon output, wood also acts as a carbon sink, absorbing and sequestering more carbon than it releases.
🔥 Opportunities
Build for longevity and durability
Mass timber is one of the most resilient building materials and can be designed to the same safety and performance standards as traditional steel and concrete.
Build hybrid buildings for sustainability and greater scale
Hybrid building combines mass timber with traditional concrete and steel for lightweight, strong, and durable structures.
Gain a marketing advantage
Building mass timber right now is a niche specialty. Distinguish your company by designing or building in the space. Swinerton did this with its mass timber construction offshoot, Timberlab.
Build faster and cheaper
Mass timber projects can help owners realize cost savings in two main ways:
Off-site prefabricated mass timber construction can help builders complete projects roughly 25% faster
Save on finish costs by leaving exposed wood
Take advantage of regulatory support and incentives
Governments are looking to support sustainable building and provide incentives, with initiatives like the Boston Mass Timber Accelerator
Invest and build companies in the space
As more mass timber projects are built, there will be a greater need for specialists in the space. Juno is an example of a company that is looking to build sustainable mass timber homes at scale.
💼 Case Studies
T3 Minneapolis - Minneapolis, MN - Developed by Hines; the first major multi-story office building constructed of wood in the last 100 years
Pier 70 - San Francisco, CA - Developed by Brookfield, the largest mass timber office building, at 310k SF.
Terrace House - Vancouver, BC - 230 ft tall hybrid mass timber by Pritzker Prize winning Shigeru Ban
The Soto - San Antonio, TX - Developed by Hixon Properties, mass timber office building anchoring 10 acre mixed-use development
Ascent - Milwaukee, WI - Developed by New Land Enterprises, the world's tallest hybrid mass timber
First United Bank - Designed by Gensler, First United Bank has built two mass timber projects to meet sustainability goals
Adidas Headquarters - Portland, OR - Designed by Lever, LEED Gold certified, Adidas five story office building
🤝 Players
Now that we’ve identified the problem and opportunities, let’s look at some of the players in the space.
Education and Project Support
ThinkWood - lumber communication organization full of resources for mass timber building
Structurlam - leading manufacturer of mass timber products with resources
Developers
Hines - Developer of T3 (timber, transit, technology) brand of mass timber projects, designed by DLR Group
New Land Enterprises - Developer of Ascent, a 25 story mass timber building in Milwaukee
Columbia Property Trust - Developer and REIT that has built mass timber projects like 80 M Street in Washington DC
Brookfield Properties - Global developer and asset manager building Pier 70, the largest mass timber office project on a 28 acre waterfront development site in San Francisco, CA
Designers
Dialog - designer of a patent pending 105 story skyscraper prototype in Toronto
Gensler - Designer of mass timber projects, like First United Bank
ZGF - Leading design firm for sustainability; designed PAE living in Portland
Perkins and Will - Designer of mass timber projects like the 130k SF office 1 De Haro
Michael Green Architecture - Michael Green literally wrote the book on mass timber and is considered one of the leading proponents and innovators in the space
Builders
Timberlab - Experts in mass timber building, builder of Ascent
Placetailor - Design/Build firm focused on sustainability
Engineers
Structurecraft - Structural engineers for timber projects like T3 and The Soto
Arup - Leading design and engineering firm in sustainable building; provided engineering services for Ascent
Urban Planning
Sidewalk Labs - Urban innovation unit within Google; proposed a $1.3B mass timber master plan for Toronto that was ultimately scrapped
Start-ups
Intelligent City - Raised $30M to deliver prefabricated mass timber urban housing
Juno - Productizing mass timber
✨ Predictions
Governments will continue to support mass timber projects and provide incentives, such as the Boston Mass Timber Accelerator
Mass timber projects will double over the next 5 years and more specialists will be needed in the space
Larger and taller structures will be built as technology improves
Building codes will adapt as mass timber adoption increases and further studies are available
New innovations will be created in engineered wood products, improving fire safety and seismic performance
Mass timber will be further adopted into infrastructure projects, like this Banff mass timber bridge
New markets across Asia and North America will see mass timber projects
Further integration with Building Information Modeling (BIM) will improve efficiency of mass timber building
Greater supply in the market will drive down the cost of mass timber
✅ Key Takeaways
Mass timber is a renewable and sustainable resource that can be built to the same safety and performance standards as steel and concrete
Mass timber can reduce the time to build by about 25% and can lead to cost savings and faster lease-up periods.
Due to the uniqueness in the market and the product's sustainability, these buildings may rent at a premium, commanding $7/sf or more
Opportunities exist to create a market niche for skilled developers, designers, and builders in the industry
🧐 FAQ
Is mass timber fire resistant?
Yes. In the event of a fire, mass timber products char on the outside, forming a protective layer while retaining strength.
How does it hold up in hurricanes and earthquakes?
Mass timber structures meet and exceed seismic performance of comparable concrete and steel buildings.
How tall can you build with mass timber?
International Building Code (IBC) permits up to 18 stories; Hybrid structures (mass timber with concrete and steel) may build higher, like the Ascent, at 25 stories
How can you insure mass timber buildings?
Due to the recent growth and rapid advancement of mass timber projects, many insurers are still learning how to assess risk properly.
WoodWorks has a great insurance guide and resources to help developers learn about insuring their mass timber developments.
How can you get started developing and building with mass timber?
Learn - This guide is a good place to start. Check out the resources below for some in-depth guides and information.
Network - Start speaking with organizations such as WoodWorks and ThinkWood. There are also conferences, such as the International Mass Timber Conference, to meet others in the space.
Start small - Armed with knowledge and a network, it's time to try out a project. Work with others that have built mass timber. If you're a developer, partner with others that have done it and hire a design team that specializes in these types of projects.
🔗 Resources
Mass Timber Manual by Think Wood
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