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Clear Height

Clear height is the vertical distance from the finished floor to the lowest hanging obstruction inside an industrial building. It defines the minimum height of usable space, so a beam or a pipe run can set the number even when the roof sits well above it. A building marketed by roof height can therefore have a materially lower clear height than the listing suggests.

Why the lowest obstruction sets the number

Clear height is measured from the finished floor up to the lowest point that blocks the space. Roof deck height and structural height are separate measurements, and both can run higher than the clear figure.

The figure is a floor on usable height, so it follows the single lowest point. If one bay has a beam, a light or a piping run hanging lower than the rest, that point defines the usable height for anything stored or operated beneath it.

A tenant stacking product, installing racking or running equipment is capped by the lowest point it must work under. That is why the clear figure carries more weight in industrial analysis than any height quoted at the roof.

“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.”

Naiop terms and definitions

How the same figure reads across industrial building types

Industrial is a broad label. Building characteristics vary with tenant or developer needs, and some properties serve several functions at once, so a single height figure rarely fits the whole category.

Modern warehouses are typically built with higher ceilings so goods can be stored more efficiently, and they tend to be smaller and spread out more widely to meet quick delivery timelines. Older buildings were built to earlier specifications and can sit well below that mark.

Cold storage is warehouse space designed around the temperature needs of refrigerated and frozen goods. It may be custom built for the whole warehouse portion or created by retrofitting part of a facility, so a retrofit can leave different heights in different zones of the same building.

Manufacturing space is defined by use: converting, fabricating or assembling raw or partly finished materials into goods. A height that suits one tenant’s process can fall short for another.

Small-bay, multi-tenant industrial is defined partly by suite size and clear height, so the height is part of what makes the product a category. A large distribution box is a different product with its own height profile.

Tests for a quoted height during property review

A quoted clear height is a claim about the minimum, so the first test is where it was taken. A figure read under open roof deck in one bay says nothing about a bay with a beam or fixture hanging lower.

The second test is the floor reference. Slabs can slope or step, and a height taken from a raised dock-area floor differs from one taken at the main floor.

The last test is use. Clear height describes the envelope only, and whether it fits depends on the operation, since building characteristics vary with tenant needs and some properties serve more than one function.

Worked example: a hypothetical 32 foot marketed building with a 26 foot clear height

Consider a hypothetical warehouse marketed at 32 feet. The lowest hanging obstruction over the racking area measures 26 feet from the finished floor, so the clear height is 26 feet. The gap is 32 minus 26, or 6 feet, which is 6 divided by 32, or 18.75 percent of the marketed figure.

To price that gap in capacity, assume pallet racking with 5 feet of height per rack level, 3 feet of required clearance below the lowest obstruction, and 2,000 pallet positions per level. These are illustrative operating assumptions.

Base case, using the marketed 32 feet: usable height is 32 minus 3, or 29 feet. Dividing 29 by 5 gives 5.8, so 5 full levels fit. Pallet positions are 5 multiplied by 2,000, or 10,000.

Stressed case, using the measured 26 feet: usable height is 26 minus 3, or 23 feet. Dividing 23 by 5 gives 4.6, so 4 full levels fit. Pallet positions are 4 multiplied by 2,000, or 8,000.

The difference is 10,000 minus 8,000, or 2,000 positions, which is 2,000 divided by 10,000, or 20 percent fewer. The 18.75 percent height gap removed 20 percent of capacity because the loss crossed a level boundary and took out a whole level.

Both cases share the same floor area, racking assumptions and clearance. Only the height entering the calculation changes.

Clear height mistakes in underwriting and property descriptions

Using roof or deck height as clear height overstates the usable envelope whenever anything hangs below the roof. The correct measure ends at the lowest obstruction, which in the example is 26 feet against the 32 feet marketed.

Treating one measurement as the building-wide figure hides local variation. The minimum applies where the lowest obstruction sits, so a reading from one bay can overstate the rest.

Assuming capacity moves in step with height misses the step function. Storage fits in whole levels, so the example’s 18.75 percent height gap produced a 20 percent capacity gap, while a smaller gap could have cost no level at all.

Comparing two quoted heights without confirming the same floor reference and the same obstruction method can produce a difference that does not exist in the buildings.

Reading height as a stand-in for overall industrial quality compresses several characteristics into one number. A retrofit cold storage zone, a manufacturing floor and a small-bay suite each depend on different features.

Questions for confirming a clear height figure

Does the stated figure run from the finished floor to the lowest hanging obstruction? That is the usable height definition, and a figure taken to the roof deck answers a different question.

Where in the building was the measurement taken? A single bay can read higher than the point that governs the rest of the space.

Which floor served as the reference? Slab changes can shift the number by feet between the dock area and the main floor.

Were the buildings being compared measured on the same basis? A common method makes a difference in height a real difference.

How does the height translate into whole storage levels for the intended racking? Capacity changes in steps, so the remainder above the last full level goes unused.

Is the space a cold storage retrofit or a multi-function building? Different zones of one property can carry different heights.

Does the tenant’s operation depend on vertical storage or on production equipment? The envelope fits those uses differently.

Was the building designed to an older or a modern specification? Modern warehouses typically have higher ceilings, so the design era frames what the figure should be.

Sources
  • Naiop terms and definitions (link)
  • More than meets the eye: Continued opportunities in commercial real estate, ABA Banking Journal (link)
  • Corner Insights: From Data Access to Data Advantage, CenterSquare (link)

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