In industrial real estate, a property's clear height is the height to which product can safely be stored on racking. Clear height can also be defined as the height of a building from the floor to the bottom of the lowest hanging item on the ceiling (i.e. sprinklers, lights, etc.).

While clear heights under 20 feet used to be commonplace, today, demand for increased warehouse volume is soaring. As a result, many industrial tenants are now requesting clear heights of 36 feet. Experts suggest that tenants can increase the capacity of a warehouse by 10-25% simply by increasing a building's clear height from 32 feet to 36 feet.

This may be especially important to note for investors and developers looking into building industrial real estate. With just a small increase in clear height, developers may be able to get significantly more rent for only a small increase in construction costs. However, taller warehouses are typically more in demand in larger metropolitan areas and industrial centers where space is at a premium, and are therefore most likely to garner higher rents in these areas.

Having a higher clear height in a commercial property can increase the capacity of a warehouse by 10-25%. This is because taller warehouses are typically more in demand in larger metropolitan areas and industrial centers where space is at a premium, and are therefore most likely to garner higher rents in these areas. Logistics tenants understand this, with many major companies refusing to even consider occupying assets with clear heights under 30 feet. Additionally, a 100,000-square-foot warehouse with a clear height of 20 feet has 2 million cubic feet, while a structure with the same footprint but clear heights of 36 feet could have up to 3.6 million — that’s 80% more space for storing products.

In industrial real estate, a property's clear height is the height to which product can safely be stored on racking. Clear height can also be defined as the height of a building from the floor to the bottom of the lowest hanging item on the ceiling (i.e. sprinklers, lights, etc.).

Typical clear heights have increased over time, with many industrial tenants now requesting clear heights of 36 feet. Experts suggest that tenants can increase the capacity of a warehouse by 10-25% simply by increasing a building's clear height from 32 feet to 36 feet.

Source: www.commercialrealestate.loans/commercial-real-estate-glossary/clear-height

The common clear height requirements for commercial real estate vary depending on the type of industrial tenant. Generally, clear heights under 20 feet used to be commonplace, but today, many industrial tenants are requesting clear heights of 36 feet. This is due to the increased demand for warehouse volume and the potential to increase the capacity of a warehouse by 10-25% simply by increasing a building's clear height from 32 feet to 36 feet. Taller warehouses are typically more in demand in larger metropolitan areas and industrial centers where space is at a premium.

Clear height in commercial real estate is the height to which product can safely be stored on racking, while ceiling height is the height of a building from the floor to the bottom of the lowest hanging item on the ceiling (i.e. sprinklers, lights, etc.). Typical clear heights have increased over time, with many industrial tenants now requesting clear heights of 36 feet. This may be especially important to note for investors and developers looking into building industrial real estate, as a small increase in clear height can result in significantly more rent for only a small increase in construction costs. However, taller warehouses are typically more in demand in larger metropolitan areas and industrial centers where space is at a premium, and are therefore most likely to garner higher rents in these areas.

For more information, please visit www.commercialrealestate.loans/commercial-real-estate-glossary/clear-height.