Entitlement timelines have become as critical as labor costs and logistics access in determining which markets capture industrial investment, according to David Ebrahimzadeh, President and Founder of Corniche Capital. Developers now face a clear divide between regions where approvals stretch into years and those where projects can move from site plan to permits in a matter of weeks. This dynamic is changing where capital flows and which states attract new manufacturing facilities.
In established industrial markets like New York, New Jersey, and Pennsylvania, Ebrahimzadeh says even straightforward, as-of-right industrial projects typically take one to three years to achieve full entitlement. “It takes one to three years to achieve full entitlement on an as-of-right industrial property in these markets,” he says. He describes the process as expensive, slow, and often frustrating.
These extended timelines are not just a bureaucratic inconvenience. Regulatory complexity, environmental reviews, and local approval processes combine to create a drag on development that directly impacts project economics. For developers using their own capital, the additional carrying costs can make otherwise viable projects financially unworkable. The longer a site remains stuck in approval, the higher the costs and the greater the risk that market conditions will change before a project can even break ground.
Speed Advantage in Secondary Markets
In contrast, emerging industrial hubs in the Southeast and Southwest are using faster approval processes to attract both developers and the manufacturers they serve. New Mexico stands out in Ebrahimzadeh’s portfolio for its rapid permitting. “As long as you’re not looking for any variances, you can get permits inside of 30 days,” he says. Site plan approvals also move quickly, making New Mexico one of the fastest states in the country for industrial development.
South Carolina also offers swift approvals, according to Ebrahimzadeh, and both states now rank among his top investment targets. This speed gives developers a measurable edge: lower carrying costs, quicker capital deployment, and the ability to respond rapidly to tenant demand. Manufacturers looking to build new facilities can break ground within months, rather than years, providing a clear competitive advantage.
Ebrahimzadeh attributes this advantage to deliberate policy decisions. State and local economic development authorities in New Mexico and South Carolina have prioritized reducing friction in the development process. By streamlining permitting, they attract both industrial operators and the capital needed to build new facilities.
Permitting Timelines Now Drive Site Selection
For developers with capital ready to deploy, Ebrahimzadeh says permitting timelines are now as important as power availability, labor costs, or logistics access in deciding where to invest. “I’m very keen on South Carolina, Texas, and New Mexico at the moment,” he says, noting that although he remains active in Detroit, those three states are now central to his development focus.
Ebrahimzadeh’s current portfolio reflects this strategic shift. About half of his deal pipeline involves acquiring existing buildings, and the other half is new development, a balance he says would be difficult to achieve in markets where approvals take years, and risk accumulates over time.
His focus on New Mexico has grown as he’s watched the state coordinate its approach to attracting industry. State and local agencies offer incentive abatements and grant packages to companies that set up manufacturing or distribution facilities and create jobs. These efforts create what Ebrahimzadeh describes as a “virtuous cycle,” where developers can move projects forward quickly while economic development authorities actively refer tenant prospects to leasing brokers.
“When the state and local economic development authorities refer prospects to leasing brokers, the process becomes much easier for them,” he says.
Corniche Capital’s Model: Speed and Flexibility
Corniche Capital operates without institutional partners or outside investors, relying solely on Ebrahimzadeh’s own capital for acquisitions and development. “I don’t have partners, I don’t raise capital, I don’t have any institutional LP partners,” he says. This independence allows him to be selective, but it also increases the risk of capital being tied up in lengthy entitlement processes. The opportunity cost of waiting years for approvals can outweigh the project’s potential upside.
Currently, Corniche Capital is pursuing significant master-planned developments in Los Lunas, New Mexico, including 1,000-acre-plus communities with single-family homes, multifamily rentals, condos, and retail centers designed to support the needs of the area’s growing industrial workforce.
Looking Ahead: Will Other Developers Follow?
Whether other major industrial developers will shift their focus as dramatically as Ebrahimzadeh depends on how quickly traditional markets respond. As entitlement speed becomes a clear competitive disadvantage, capital is increasingly flowing to regions where approvals are measured in weeks, not years. States that adapt their processes may keep their share of industrial investment; those that don’t risk being bypassed as developers and manufacturers seek out faster, lower-risk environments for growth.