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Warehouses Are Getting Taller So Online Players Can Maximize The Space

WASHINGTON DC 06.27.2017

THE WASHINGTON DC STATE OF THE MARKET

Matt Bronfman -- Jamestown Properties
Anthony Lanier -- EastBanc
Herb Miller -- Western Development
Warehouse

Warehouses are getting taller, and those height gains are critical for e-commerce companies.

Online players use the extra head space to install additional mezzanine levels to hold more racks and employees, ensuring they can squeeze every bit of worth out of the warehouse.

But for some reason those vertical space gains are being overlooked by simple area calculations, an issue that CBRE said can be fixed by using volume to measure industrial space.

American warehouses averaged 24 feet high in the 1960s, but warehouses built last year were on average 33 feet high. CBRE Group Head of Industrial & Logistics Research in the Americas David Egan said measurements in cubic feet provide a better representation of a warehouses’ worth than measurements done in square feet.