Sure, location matters for warehouses. But what about ceiling height?
In New York City, it turns out it matters quite a bit. During the second half of 2021, industrial warehouse properties in the Bronx, Brooklyn and Queens with ceiling heights of at least 20 feet traded for $567 a square foot vs. $366 a foot for properties with ceiling heights under 20 feet, according to a new report from AEBOV, a brokerage specializing in industrial.
That $201-a-foot premium between 20-foot-plus ceilings and lower heights was particularly stark. The difference in per-foot price between properties with multiple loading locations and a single location was only $96, for instance — $465 per foot vs. $369. And the price difference between properties within a mile of a highway compared to those farther away was negligible — $25 per square foot, with the premium favoring those properties farther away. Finally, the price difference between whether a warehouse was in an industrial business zone or not was $61 at $488 per foot.