One the most significant changes in the industrial real estate sector is the increase in overall size and clear heights of industrial buildings across the US. That is according to Pat Ward, founder of MetroGroup Realty Finance. “Today, large industrial distribution and warehouse users are seeking substantially larger buildings than those that existed 15 years ago.”
GlobeSt.com exclusively spoke with Ward on how the sector has evolved in terms of space use and demand. He notes that “We are commonly seeing industrial buildings that are one million square feet or larger. Fifteen years ago, large buildings may have had a 24-foot clear height, whereas today, it is very common for buildings to have 36-foot clear height. The increased clear heights allow warehouse users to look at their space in terms of cubic feet rather than merely square feet.”
In addition, he says, the rise of the e-commerce market has created an environment where goods remain in warehouse buildings for much shorter periods of time—turnover time is rapidly decreasing. “These larger facilities have created an environment where the user is in the space business as opposed to the people business.”
He explains that “Material handling innovations have made dramatic strides in industrial real estate. Robotics are commonly used for delivering goods within distribution centers. Conveyor systems are becoming more and more sophisticated. With the advent of ESFR fire sprinkler systems, which deliver three to four times more water, racking systems have increased in size and sophistication. In addition, better designed and functioning forklifts allow aisles to be narrower.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
