40-Foot Ceiling Heights: The Feature No One Really Wants?

Warehouse ceilings may be reaching farther into the sky, but it is not necessarily because tenants are demanding it.

“We are building 40-foot clear [ceiling heights]. We have not had a tenant to date utilize that,” Core5 Industrial Partners Managing Director Lisa Ward said.

Developers have been raising ceiling heights and overall warehouse sizes for the past few years, especially as companies rely further on e-commerce to drive sales. Between 2012 and 2017, the average warehouse was 185K SF, 143% larger than the typical warehouse built between 2002 and 2007, according to a recent CBRE report. On top of that, ceiling heights climbed 4 feet to an average of 32.3 feet in the same period...

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RSK: Very interesting. I think the street level drive-in doors for Uber and Lyft deliveries would be more important than 40` high ceilings.

Ken Notes: Amazon is now offering $100,000 to independent last mile providers (see second article) and in dense areas up will be the only affordable option.