‘Pad Ready’ Sites: Are You Taking the Label at Face Value?

In today’s competitive industrial real estate market, terms such as “pad ready,” “shovel ready,” and “certified site” are frequently used to describe sites that are well-positioned for development. These labels indicate that a site is prepared for rapid development, providing corporate users with speed-to-market advantages and reduced development risk.

In practice, however, the actual level of preparedness behind these terms can vary widely. That said, many sites using these designations are genuinely ready for development and offer real advantages for users seeking speed and certainty. The challenge lies in distinguishing between sites that are truly development-ready and those that may fall short, especially when both are marketed using the same terminology.

For companies making high-stakes location decisions, understanding what is behind these labels, and validating it independently, is essential to avoid costly surprises and delays. Site Selection Group, a full-service location advisory, economic incentives, and real estate services firm, conducts detailed technical evaluations of industrial sites to assess how site readiness aligns with project schedules and infrastructure needs.

The pitfall of assumed readiness

Many industrial projects are launched under the assumption that a pad-ready site will allow construction to begin almost immediately. However, assuming a site is as ready as it is marketed without verification introduces significant risk. This assumption can lead to unexpected delays, increased costs, or even the discovery of fatal flaws that jeopardize the project altogether. The more readiness is taken at face value, the greater the chance that critical issues will be missed during the planning and budgeting phases.

Some of the most common risks include:

• Delays due to incomplete or unclear permitting and entitlement pathways, which can halt project advancement or trigger redesigns
• Increased costs from unplanned infrastructure upgrades, such as access improvements or traffic control requirements
• Fatal flaw risks related to utility service gaps, such as insufficient capacity or need for off-site or upstream improvements
• Environmental issues that remain unresolved, which can delay approvals, increase costs or constrain site layout

Each of these risks increases the likelihood of budget overruns, timeline slippage or project feasibility concerns if not identified and addressed early.

What a truly ready site looks like

Although there is no universal checklist for pad ready industrial sites, there are several key features that should be present, or at least well-documented, before a site can credibly be described as development ready.

Key characteristics typically include:

• Site access and transportation connectivity suitable for industrial development and equipment mobilization
• A graded, compacted building pad supported by verified geotechnical reports
• Utilities (electric, water, sewer, gas, and fiber) installed or stubbed to the site, with documented capacity and service commitments and no major upstream limitations
• Proper zoning aligned with the intended industrial use
• Community support that suggests the development of the site won’t cause undue opposition
• Completed environmental due diligence, including a current Phase One Environmental Site Assessment, wetland delineations, endangered species assessments, cultural resource studies, and geotechnical evaluations, with any identified issues already resolved to avoid future delays
• A clear path to construction permitting, ideally with minimal discretionary review and a known timeline or pre-permitting complete

Each of these elements contributes to a thorough site readiness evaluation, a critical part of industrial real estate due diligence. In addition to these core elements, truly development-ready sites may also demonstrate characteristics such as clear title and ownership, recent boundary and topographic surveys, stormwater management planning, and eligibility for economic development incentives. These attributes help eliminate ambiguity, accelerate the permitting process, and further reduce development risk. When a site meets these standards, it helps reduce development risk and aligns expectations across real estate, engineering, and operations teams.

Finding the gaps

Despite a site’s marketing claims, readiness often exists on a spectrum. Some of the most common disconnects include:

• Utility Limitations: Utility lines near or on a site do not guarantee service. Without confirmed capacity or clarity on needed upgrades, projects can face delays and added costs. For example, a nearby power line may still require a substation upgrade, introducing a fatal flaw that halts development.
• Permitting Ambiguity: Even when zoning appears aligned, uses like hazardous material storage or rail access may still require special approvals. Local restrictions on design, storage, height, noise, or odor can further limit feasibility. Private covenants may also impose hidden constraints or added steps.
• Outdated Environmental Work: Older environmental reports may no longer reflect current conditions or regulations. For example, a site once thought to have no protected species could now support a newly listed bat, triggering additional studies and timing restrictions. Without updated data, projects may face delays, added costs, or new permitting hurdles.
• Incomplete Information: In many cases, site documentation relies too heavily on summaries or marketing collateral. Without reviewing source data (such as utility maps, permitting checklists, or comprehensive environmental reports), decision-makers are left to fill in the blanks.

These oversights are rarely the result of bad faith; more often, they stem from well-intentioned attempts to market a site that is in progress but not yet fully validated.

The value of an independent technical review

Given the complexity of modern industrial projects, independent validation of site readiness is increasingly essential. At Site Selection Group, our team often conducts technical reviews that go beyond marketing materials to confirm actual project feasibility. These steps are fundamental components of industrial real estate due diligence.

• Engagement with utility providers to verify infrastructure availability, design constraints, and construction timelines
• Review of permitting pathways, including interviews with local planning officials and code enforcement officers
• Structured evaluation of environmental documentation, including follow-ups with consultants or regulatory agencies as needed

Readiness is a spectrum, not a checkbox

Site readiness should be viewed as a spectrum rather than a binary label. A location may be well-prepared in some areas, such as utility access, and less so in others, such as permitting. While the term pad ready can be a helpful starting point, it should not replace thorough validation.

Before you commit to a site labeled as pad ready, make sure it truly meets the standards of a development-ready location. A thorough site readiness evaluation, including industrial real estate due diligence, can reveal critical gaps. Site Selection Group provides independent assessments and technical reviews to help validate industrial sites and ensure alignment with your project’s timeline and infrastructure needs. Contact us to start the conversation.