Due to rapid technological changes, which risk do industrial facilities face?

Functional obsolescence is the correct answer because it refers to a decline in an asset’s usefulness or desirability due to changes in the environment or technology that affect how the asset can be used. In the context of industrial facilities, rapid technological changes can render existing buildings, equipment, or methods outdated or inefficient. For instance, if a new manufacturing technique emerges that requires different spatial configurations or infrastructure, an older facility may not be adaptable to these new requirements, leading to functional obsolescence.

In contrast, while environmental hazards can be a concern for industrial facilities, they are not directly linked to technological advancements; rather, they pertain more to compliance with environmental regulations and impacts on safety. Increased operating costs might occur for various reasons, including market fluctuations or regulatory changes, but they aren't strictly tied to the issue of being technologically out of date. Higher labor costs can arise from various economic factors and are not specifically a direct result of technological changes affecting industrial facilities. Thus, the prompt primarily highlights the importance of adaptability in the face of fast-evolving technology, making functional obsolescence the most relevant risk in this scenario.