Industrial clear heights rising with e-commerce growth
The average clear height of buildings delivered in 2018 was 33.6 feet, an 18.1 percent increase since the Dot Com Boom.
March 25, 2019
- The average clear height of buildings delivered in 2018 was 33.6 feet, an 18.1 percent increase since the Dot Com Boom. As e-commerce grows and evolves, there is an increased need for newer sophisticated distribution centers. With this increasing demand, some developers are now starting to push to 40-foot clear heights for new buildings. Looking at the current development pipeline, Eastern & Central Pennsylvania, Inland Empire & New Jersey are the leading markets with the highest average clear heights.
- Higher clear heights add more cubic capacity that allows storing more palletized product, helping reduce occupancy cost on a per square foot basis. Another benefit is the ability to utilize mezzanine space for storage. Mezzanine space is commonly used by e-commerce tenants and can potentially double or triple usable storage within the facility.
- Even though e-commerce tenants are leading the trend for greater clear heights, most other industries are realizing the benefits of additional vertical space. In recent transactions, we have seen taller warehouses being built in larger metropolitan areas where space is at a premium – therefore commanding higher rents.
Source: JLL Research