{"id":1184,"date":"2017-09-19T09:23:14","date_gmt":"2017-09-19T14:23:14","guid":{"rendered":"https:\/\/www.lee-associates.com\/dallas-fort-worth\/?p=29"},"modified":"2017-09-19T09:23:14","modified_gmt":"2017-09-19T14:23:14","slug":"big-box-distribution-32-versus-36-clear-height","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/dallas-fort-worth\/2017\/09\/19\/big-box-distribution-32-versus-36-clear-height\/","title":{"rendered":"Big Box Distribution \u2013 32\u2019 versus 36\u2019 Clear Height"},"content":{"rendered":"<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">The industrial development market continues to evolve and we\u2019ve seen building clear heights continue to grow taller over the last 30 years. In the 1970s most buildings were built with a 20\u2019 clear height or fewer. Today, the big question developers of big box space are facing is: do you build a 32\u2019 clear or 36\u2019 clear building and what is the cost\/benefit analysis of doing so? And what is the size threshold where tenant demand drives the need for a 36\u2019 clear building? The below highlights the benefits tenants will receive through a taller clear height and what the impact is on cost.<\/span><\/p>\n<p>&nbsp;<\/p>\n<table class=\" aligncenter\" style=\"height: 250px;background-color: #a39999\" width=\"702\">\n<tbody>\n<tr>\n<td style=\"width: 341px\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-50 size-full\" style=\"font-family: tahoma, arial, helvetica, sans-serif;background-color: #ffffff\" src=\"https:\/\/www.lee-associates.com\/dallas-fort-worth\/wp-content\/uploads\/sites\/36\/2017\/09\/Clear-Height.jpg\" alt=\"\" width=\"1500\" height=\"1050\" \/><\/td>\n<td style=\"width: 345px;padding-left: 30px\"><span style=\"font-size: 10pt;color: #ffffff\">Clear Height &#8211; Distance from the floor to the lowest-hanging ceiling member or hanging objects, beams, joists or truss work descending down into a substantial portion of the industrial work area. This is the most important measure of the interior height of an industrial building because it defines the minimum height of usable space within the structure. (Synonyms: clear headway, clearance), as stated by NAIOP. <\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif;font-size: 14pt\"><strong><span style=\"color: #cd1500\">Benefits:<\/span><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-30 alignright\" src=\"https:\/\/www.lee-associates.com\/dallas-fort-worth\/wp-content\/uploads\/sites\/36\/2017\/09\/pallet-stacking-and-clear-height-285x300.png\" alt=\"\" width=\"285\" height=\"300\" \/><\/strong><\/span><\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">For a user that will fully \u201ccube out\u201d the building, they can increase storage capacity by 10 % to 25%.<\/span><\/p>\n<ul>\n<li><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">Increasing the storage capacity allows tenants to lease less square footage and reduce their overall rent expense.<\/span><\/li>\n<li><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">A taller clear height is more conducive for e-commerce users with automated racking and\/or mezzanine storage needs.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: left\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif;font-size: 14pt;color: #cd1500\"><strong><span style=\"color: #cd1500;font-family: tahoma, arial, helvetica, sans-serif\"><span style=\"font-size: 14pt\">Costs \/ <\/span><span style=\"font-size: 18.6667px\">Trade-offs<\/span><span style=\"font-size: 14pt\">:<\/span><\/span><\/strong><\/span><\/p>\n<ul style=\"text-align: center\">\n<li style=\"text-align: left\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">The main cost factors in constructing a 36\u2019 clear building are the floor slab thickness, fire protection system and the structural steel. In total, these three items will increase the building costs somewhere between $1.25 per square foot and $1.75 per square foot.<\/span><\/li>\n<li style=\"text-align: left\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">Due to the increased construction cost for a 36\u2019 clear building, to keep the cap rate the same the rental rate would need to increase by $0.10 &#8211; $0.15 psf.<\/span><\/li>\n<li style=\"text-align: left\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">Not all users will demand a 36\u2019 clear height.<\/span><\/li>\n<li style=\"text-align: left\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">From the available small sampling to date, the investment market is not recognizing a huge difference on a cap rate basis between a 32\u2019 clear and 36\u2019 clear building. Term, credit, location and long term functionality of the building\u00a0<\/span><span style=\"font-family: tahoma, arial, helvetica, sans-serif\">are still the main drivers in establishing value.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: left\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-31 alignleft\" src=\"https:\/\/www.lee-associates.com\/dallas-fort-worth\/wp-content\/uploads\/sites\/36\/2017\/09\/Reid-Bassinger-214x300.jpg\" alt=\"\" width=\"132\" height=\"185\" \/><\/p>\n<p style=\"text-align: left\"><strong>Reid Bassinger<\/strong>, a Principal with Lee &amp; Associates DFW, represents owners and users of industrial properties throughout the Dallas\/Fort Worth area. Mr. Bassinger specializes in industrial product in the Great Southwest and Fort Worth markets with a primary focus on tenant representation, project leasing and investment sales.<\/p>\n<p style=\"text-align: left\">To read more about Reid visit our <a href=\"https:\/\/www.lee-associates.com\/people\/?office=2404&amp;broker=15925\" target=\"_blank\" rel=\"noopener noreferrer\">website<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The industrial development market continues to evolve and we\u2019ve seen building clear heights continue to grow taller over the last 30 years. In the 1970s most buildings were built with a 20\u2019 clear height or fewer. Today, the big question developers of big box space are facing is: do you build a 32\u2019 clear or 36\u2019 clear building and what is the cost\/benefit analysis of doing so? And what is the size threshold where tenant&#8230;<\/p>\n","protected":false},"author":157,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1184","post","type-post","status-publish","format-standard","hentry","category-lees-latest-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Big Box Distribution \u2013 32\u2019 versus 36\u2019 Clear Height - Dallas\/Fort Worth<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/dallas-fort-worth\/2017\/09\/19\/big-box-distribution-32-versus-36-clear-height\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big Box Distribution \u2013 32\u2019 versus 36\u2019 Clear Height\" \/>\n<meta property=\"og:description\" content=\"The industrial development market continues to evolve and we\u2019ve seen building clear heights continue to grow taller over the last 30 years. 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