Commercial Real Estate, Capital, Insurance, Leasing & Management

Is Your Warehouse Dated?

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Larry Kahn, senior director, shares a few key factors to consider when purchasing an industrial property.

When purchasing an industrial property there are a few key factors to consider. They are ceiling height, adequate parking, truck courts and floor area ratio (FAR).  Modern industrial building used as warehouse space generally have ceiling heights of 28’ to 40’ and manufacturing space may be lower with consideration for tall machines and over-head cranes.

The days of warehouse space with up to 24’ ceiling is considered dated. Modern racking systems are designed for taller buildings. Consider a taller ceiling when acquiring or developing a new building. You can change the number of doors, docks and windows. But, changing your ceiling height is near impossible.   Lack of adequate parking will make a building difficult to market. This can also limit your ability to grow your business. You need about 1 space per 1,000 square feet.  A modern truck court is about 145 feet in depth to accommodate 53 foot trailers and larger trucks. Most communities have limited the use of the street as a truck court.

FAR is a critical ratio in functionality. The ratio of building to land area should be about .25. When it is much lower you have excess land. When the FAR is a higher ratio such as more than .55 you most likely will have inadequate land for parking, truck courts and retention ponds. This will have a significantly impact the value of your property. Often you will find this is a characteristic of a property that has been on the market for a long time.

You need enough room for parking and truck courts to function properly. Each of these factors affects the functionality and value of your property. They are not the only factors, but they are good indicators of a modern functional property. Learn more. Franklin Street, a full-service commercial real estate firm, was established in 2006 and serves clients around the Southeast from its offices in Tampa, Orlando, Jacksonville, Fort Lauderdale, Miami and Atlanta. Laurence Kahn can be reached at [email protected] or 407.458.5419.

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