Property Types
Definition
A greenfield project refers to the development of new facilities on undeveloped land, allowing for complete design freedom.
Greenfield development in industrial real estate refers to the process of constructing new facilities on previously undeveloped land parcels, commonly known as “greenfields.” These sites have no prior buildings or infrastructure, which affords developers full design and planning freedom to tailor the property specifically to end-user requirements. Unlike brownfield developments that involve repurposing or redeveloping existing, often contaminated industrial or commercial sites, greenfield projects start from a clean slate. This approach allows for optimized layouts, state-of-the-art sustainability features, and modern logistics infrastructure without constraints posed by legacy structures or environmental remediation. Greenfield developments are highly relevant in regions with expanding industrial demand and available undeveloped land, enabling tailored solutions such as large footprint logistics centers, manufacturing plants, or distribution hubs. For B2B investors and asset managers, greenfield projects represent opportunities to create high-quality, customized assets that meet specific tenant needs, improve operational efficiency, and incorporate advanced environmental standards. However, greenfield projects may also require additional upfront investments related to site preparation, infrastructure extension, and regulatory approvals. Strategically located greenfield developments support the growing supply chain and logistics needs in Central and Eastern Europe, providing key advantages in flexibility, scalability, and long-term value creation.
Practical Example: IPEC Group
IPEC Group has demonstrated the strategic use of greenfield development across its portfolio in Slovakia and the CEE region. For instance, the construction of the IPEC Logistics Park in Senec exemplifies a greenfield project where IPEC developed a state-of-the-art logistics facility on undeveloped land. This project enabled the implementation of modern warehouse design tailored precisely to tenant requirements, optimized truck circulation, and integrated advanced sustainability practices from the ground up. By opting for greenfield development, IPEC ensured a turnkey industrial solution with expanded capacity, positioning the asset to meet growing regional logistics demand without the constraints of existing site conditions. This approach aligns with IPEC’s commitment to delivering high-quality, adaptable industrial spaces that serve international logistics operators and support expanding supply chains in the CEE.
Related Terms
Brownfield Development, Industrial Park, Logistics Hub, Asset Management, Site Preparation