Two warehouses showing the same square footage can have radically different values. In logistics real estate, surface area doesn’t tell the whole story.
Before analyzing a building, you first need to understand its purpose. Is it a simple storage space where goods wait to be used? Or an intermediate logistics platform (cross-docking) where freight arrives in bulk, gets sorted, repackaged, and then shipped back out? This kind of difference matters a great deal, as it dictates the essential technical features the building must offer and, consequently, its ability to be re-let over time.
Here are the key points to examine first when analyzing a warehouse:
1. Clear ceiling height
Surface area is of course an important criterion, but volume matters just as much. It’s volume that determines how much usable racking a building can hold. Where 6 meters used to be enough a few years ago, many operators now ask for 10 to 11 meters. Height is virtually impossible to correct after construction, or only at very significant cost.
2. Column spacing
Column spacing deserves the same level of attention. The grid between pillars governs both racking layout and forklift movement. A grid that’s too narrow can put off certain tenants, just as a building that’s too low gradually becomes unsuited to market standards.
This spacing depends directly on the structure. The nature of the construction and the load-bearing capacity of the frame set the distance that can be achieved between pillars: a wider grid, more comfortable for the tenant, requires a stronger and therefore more expensive structure to build.
3. Floor slab strength
The nature of the structure and the load-bearing capacity of the frame go hand in hand with floor quality. The stronger the slab, the better it tolerates punching load (vertical pressure) from the feet of heavy racking. A low-quality floor drastically limits the type of goods that can be stored.
4. Technical fit-out and the office ratio
Technical fit-out can also make a difference: fire protection, floor flatness for robotics, lighting, not to mention the office share, generally between 5 and 20% of the floor area. This last ratio is important not to exceed, since too much office space is often unnecessary in an industrial zone, where demand for administrative space tends to be low.
In summary
The logic of a high-performing warehouse is simple: goods come in, are sorted, stored or repackaged, and then go back out. The building’s intrinsic value and its appeal to users stem from its ability to make each of these steps run smoothly.
Maxime Veysset, Partner
We are actively looking to purchase industrial properties. Please do not hesitate to contact me if you know of any opportunities.