Clear Heights, Strong Sites: Key Industrial Building Features

In any real estate acquisition, understanding fundamental metrics such as building size or potential income is essential for determining an appropriate purchase price. However, beyond these initial factors, numerous physical attributes—often overlooked—can significantly impact a property’s income potential or require additional capital expenditures. While these key features may vary by asset class, they play a crucial role in evaluating a property’s long-term marketability, lease-up potential, and future valuation. Industrial properties, in particular, have unique demands, including greater variability in use and specialized tenant needs, making it essential to evaluate their specific characteristics.

Clear Height

Clear height refers to the usable vertical space within an industrial building, measured from the floor to the lowest point of the ceiling or any structural obstruction. In many industrial properties, particularly those with sloped roofs, the clear height at the eaves (lowest point along the walls) differs from the clear height at the center (highest point at the peak of the roof). Since storage and racking systems often require consistent height throughout, the clear height at the eaves is usually the most relevant measurement for assessing a building’s functionality. Buildings with higher clear heights can accommodate greater storage capacity and more efficient logistics operations, making them more attractive to tenants and potentially increasing their long-term value. Older industrial buildings typically have clear heights of 18 to 24 feet, while modern distribution facilities often feature clear heights of 32 feet or more to meet growing logistical demands.

Docks and Drive-Ins

Docks and drive-ins are essential features for industrial buildings, particularly in distribution and manufacturing operations. Dock doors are elevated entry points that allow for efficient loading and unloading of goods from trailers. The number, size, and spacing of dock doors directly impact operational efficiency, with multiple docks enabling faster turnaround times and continuous flow. Drive-in doors, which are at ground level, are typically used for smaller shipments or by tenants requiring vehicle access for deliveries or service. While less common in large-scale operations, drive-ins are crucial for businesses needing direct vehicle access. A combination of both dock and drive-in doors broadens the building’s appeal to different types of tenants and operational needs, increasing its marketability and long-term value.

Building Configuration

Building configuration refers to the layout of an industrial property, including column spacing, floor plan, and entry points. Column spacing is especially important as it determines how adaptable the space is for racking systems, equipment, and storage. Wider spacing offers more flexibility, making the building more versatile for tenants. Cross-dock facilities, which allow for direct loading and unloading from one side of the building to the other, enhance efficiency by reducing internal transport time. Additionally, an efficient configuration makes it easier to divide the building into smaller sections, which is advantageous for accommodating multiple tenants or adjusting to different operational needs.

HVAC, Sprinklers, and Power Supply

HVAC systems, fire sprinklers, and power supply are crucial for the safety, functionality, and tenant suitability of industrial buildings. While some industrial spaces, such as warehouses, may not require HVAC systems, those that do—particularly in manufacturing, food storage, or sensitive environments—need tailored solutions to maintain temperature and ventilation. Sprinkler systems vary depending on the building’s needs: wet sprinklers are common in stable temperature environments, dry sprinklers are used in colder areas to prevent freezing. ESFR (Early Suppression, Fast Response) sprinklers are designed for quick suppression in large spaces with high storage, offering fast and efficient fire control. Finally, a robust power supply, including sufficient electrical capacity, voltage, and phase, is essential for supporting machinery and heavy operations. Together, these systems enhance a building’s overall functionality and appeal to potential tenants, but their necessity is variable depending on a specific tenant.

In conclusion, evaluating the key features of an industrial property—such as clear height, building configuration, docks, HVAC systems, sprinklers, and power supply—is essential for understanding its functionality, marketability, and long-term value. While these are some of the most important considerations, it’s important to note that other factors, such as location, zoning, and site accessibility, can also be significant depending on the building’s intended use. By considering these factors, investors and owners can make more informed decisions and optimize the value of their industrial assets.

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