In this exclusive op-ed for The Manufacturer, Ascension Advisory’s Chelsea Mandel looks at how build-to-suit financing can enable manufacturers to secure the facilities they need without the burden of real estate ownership.
America’s manufacturing comeback
For the better part of the last two decades, the rhetoric surrounding American manufacturing, once a cornerstone of the U.S. economy, has centered around job decline, offshoring, and the erosion of industrial centers.
Outdated infrastructure, a lack of investment in industrial assets, and an overreliance on fragile global supply chains left the sector hollowed out. But the narrative is shifting. American manufacturing is roaring back—not out of nostalgia, but out of necessity. The rise of nearshoring, supply chain resilience, and federal policies are accelerating domestic production at a scale not seen in a generation.
Factory construction in the United States is experiencing an unprecedented boom. American factory construction reached $172 billion in the first nine months of 2024—double the amount during the same period in 2019, adjusting for inflation. This surge, initially triggered by tariffs during Donald Trump’s first term and compounded by pandemic-induced supply chain vulnerabilities, reflects a fundamental rethinking of the nation’s industrial strategy. Companies are racing to reshore manufacturing, secure critical supply chains, and align with incentives from federal legislation.
For business owners and financial sponsors, this boom presents a unique opportunity—and challenge. The need to modernize and expand manufacturing capabilities is clear, but securing the capital required for such projects without over-leveraging the balance sheet is no small feat. That’s where build-to-suit (BTS) financing plays an important role.
Why build-to-suit financing is the backbone of the new industrial boom
Modern manufacturing isn’t just about production—it’s about precision, automation, and efficiency. Whether it’s an advanced semiconductor fab, an EV battery gigafactory, or a next-gen aerospace facility, industrial operators need tailor-made real estate to compete. But tying up capital in real estate doesn’t make sense when those funds could be fueling production lines, R&D, or top-tier talent acquisition.
Enter build-to-suit financing.
BTS transactions allow manufacturers to secure purpose-built facilities without the burden of real estate ownership. A developer or sale leaseback investor funds the construction of the facility, while the manufacturer moves in as a long-term tenant, paying rent instead of carrying real estate on the balance sheet. It’s a financial lever unlocking billions in industrial investment while preserving corporate liquidity and flexibility for operators.
The smartest money in the room sees the opportunity
Private equity firms, institutional investors, and infrastructure funds are pouring capital into industrial real estate, chasing long-term, stable cash flows from creditworthy manufacturing tenants. For manufacturers, this means BTS financing isn’t just available—it’s competitive. As industrial tenants become the darlings of real estate investors, companies that leverage BTS financing are gaining access to world-class facilities without the typical constraints of ownership.
BTS financing is also reshaping the geography of manufacturing. The Southeast, Midwest, and Texas have emerged as hotbeds for industrial expansion, attracting manufacturers with business-friendly policies, skilled labor pools, and logistical advantages. Meanwhile, states rolling out aggressive reshoring incentives are seeing a flood of industrial development. Need proof? Look no further than the $200 billion wave of U.S. semiconductor investments or the surge in EV supply chain megaprojects nationwide.
Economic policy volatility and the nearshoring shift
Beyond supply chain resiliency, economic policy uncertainty is accelerating nearshoring. Geopolitical tensions, shifting trade policies, and the looming threat of tariffs across key sectors have made offshoring an increasingly risky bet. Every administration change brings new tax structures and incentive programs, creating regulatory whiplash that can disrupt long-term planning for overseas operations.
Manufacturers are hedging against this uncertainty by locking in stability at home. Rather than gambling on trade negotiations or hoping for regulatory consistency abroad, companies are leveraging BTS financing to secure modern infrastructure within U.S. borders—ensuring cost efficiencies and operational control in a volatile global landscape.
The role of sustainability in the new industrial economy
Sustainability is no longer a marketing tagline—it’s a financial imperative. Modern facilities must comply with stringent environmental regulations while also meeting corporate ESG mandates. BTS financing allows manufacturers to integrate sustainability from the ground up, designing facilities with energy efficiency, renewable energy systems, and water conservation measures that reduce long-term operating costs.
Investors and stakeholders are scrutinizing carbon footprints more than ever. Companies that fail to modernize risk facing higher costs, regulatory roadblocks, and reputational damage. With BTS financing, manufacturers can develop LEED-certified, carbon-neutral, and future-proofed facilities—all without diverting capital away from core business operations.
How local governments are playing a role
State and local governments recognize the transformative impact of manufacturing investment, and they’re stepping up to support BTS developments with tax incentives, expedited permitting, and infrastructure funding. Economic development boards know that a single industrial facility can create thousands of direct and indirect jobs, stimulate regional economies, and attract secondary industries. As a result, municipalities are aligning their incentive programs with BTS financing to ensure long-term industrial growth in their regions.
The future of industrial growth: who wins?
The manufacturers that embrace build-to-suit financing will hold the competitive edge in this new era of industrial expansion. Facility ownership is no longer a necessity—it’s a constraint. BTS unlocks operational agility, allowing companies to scale production in cutting-edge facilities while keeping their capital focused on growth.
If your competitors are ramping up in brand-new, customized manufacturing hubs while you’re stuck in a decades-old plant with legacy inefficiencies, who do you think wins?
Final thought: adapt or be left behind
America’s industrial resurgence is no longer a question of “if”—it’s happening. The only question is, who’s positioning themselves to win? Manufacturers who leverage build-to-suit financing aren’t just surviving—they’re leading. And in the high-stakes world of modern manufacturing, that’s the only position that matters.
About the author
Chelsea Mandel is the Founder & Managing Director of Ascension Advisory.
Founder and Managing Director of Ascension Advisory, Chelsea oversees all sale leaseback transactions and corporate real estate advisory assignments, partnering with business owners, private equity firms, and other financial sponsors in structuring innovative solutions for their corporate real estate, globally.
In less than a decade, Chelsea has established herself as a pioneering force in corporate real estate finance due to a relentless work ethic and unparalleled transaction volume across real estate asset classes and global markets. Upon graduating magna cum laude from Dartmouth College with a degree in Economics, Chelsea joined the acquisitions team at Starwood Capital Group. She quickly thrived as the sole woman in her acquisitions team of 52 investment professionals, gaining expertise in underwriting and deal negotiations. Based on this success, Chelsea was recruited to join NYC-based New Mountain Capital to build out its sale leaseback platform – one of the first net lease funds of its kind among middle-market private equity firms. Chelsea was instrumental in this role, raising $533m of capital for the platform’s first fund, acquiring 5+ million square feet of industrial and office space, and closing $450m in transactions.
Through her experience at two premier investment firms, Chelsea developed a passion for working with business owners and financial sponsors, leading her to pivot to an advisory role at STREAM Capital Partners. Her principal investing background enabled her to think outside the box to meet the unique needs of both her clients and buyers in arranging corporate real estate transactions. Notably, she was an innovator in bringing middle-market sale leaseback opportunities to tertiary markets and across Europe and developed creative structuring methods that enabled her clients to fund 100% of their business acquisitions with proceeds from sale leaseback transactions. Within a year, Chelsea became STREAM’s top advisor, eventually closing a record $943m in deals across a variety of sectors and asset classes in the United States, Canada, Mexico, and Western Europe.
Driven by an entrepreneurial spirit and a mission to establish the gold standard for corporate real estate advisory solutions, Chelsea launched Ascension Advisory. Chelsea is committed to continued investment in the platform, technology, and processes to arm her team with the most advanced systems and provide her clients with a level of sophistication and expertise that simply does not exist elsewhere in today’s market.
For more articles like this, visit our Leaderhip channel
