Cubic footage is a measurement of the interior of a structure that can be used for product storage. It is calculated by multiplying the length, width, and height of a space. For example, a 50,000-square-foot property with 36-foot clear heights has 50% more cubic space than a structure with the same footprint but only 24 feet of clearance.

Unlike many other characteristics of most commercial real estate, clear heights are practically unchangeable. Boosting a structure’s clear height would more or less mean rebuilding the property, after all. Because of this, make sure you choose an industrial asset with clear heights that ensure it stays in demand in the years to come.

Sources: Picking the Right Industrial Investment and What to Know Before Making Your 1st Industrial Property Investment

Cubic footage is calculated by multiplying the square footage of a property by its clear height. For example, a 50,000-square-foot property with 36-foot clear heights has 50% more cubic space than a structure with the same footprint but only 24 feet of clearance. This calculation is important when considering an industrial real estate investment opportunity.

In most cases, buildings are measured using standards created by the Building Owners and Managers Association (BOMA). Commercial tenants, especially those considering signing a long-term lease, may wish to have the space remeasured by a certified professional before making a final decision.

Having a higher cubic footage in an industrial property can provide many benefits. The most important benefit is that it increases the amount of inventory that can be stored in the facility. For example, a 50,000-square-foot property with 36-foot clear heights has 50% more cubic space than a structure with the same footprint but only 24 feet of clearance. This means that the property with the higher cubic footage can store 80% more products than the other property. Additionally, many major companies refuse to consider occupying assets with clear heights under 30 feet, so having a higher cubic footage can make a property more attractive to potential tenants.

Having a lower cubic footage in an industrial property can limit the amount of product storage available. This can be especially problematic if the property was constructed before the 1980s, as most of these properties had clear heights of less than 20 feet. This means that a 50,000-square-foot property with 36-foot clear heights has 50% more cubic space than a structure with the same footprint but only 24 feet of clearance. Additionally, having columns spaced irregularly or at small intervals can limit the movement of forklifts and other loading equipment, as well as impact the configuration of warehouses’ all-important shelves and other storage racks by reducing the property’s usable square footage.

The most common uses for industrial properties with high cubic footage are warehouse/distribution centers, refrigeration and cold storage centers, flexible buildings, heavy manufacturing buildings, light manufacturing buildings, and data/communications centers.

Warehouse/distribution centers are characterized by features such as high ceilings, loading docks, truck doors, and massive parking lots. Refrigeration and cold storage centers are usually used as food distribution centers and incorporate large-scale walk in refrigerators and/or freezers. Flexible buildings are designed to incorporate both office space and industrial space, including R&D centers, light manufacturing areas, and small amounts of warehouse space. Heavy manufacturing buildings are specifically designed for manufacturing and may include high capacity ventilation systems, heavy ductwork, three-phase electric power systems, pressurized air/water lines, storage tanks, and other specialized features. Light manufacturing buildings may have a few of the features of heavy manufacturing buildings, but typically are not designed for uses that require significant amounts of power or heavy ventilation systems. Data/communications centers are usually designed to accommodate major telecom provides, these properties are typically located near communications lines, and have specialized floor slabs and HVAC systems intended to keep electronic equipment in good condition.

For more information, please see the following sources:

• Picking the Right Industrial Investment
• CMBS Loans for Industrial Properties

Industrial property owners can maximize the cubic footage of their properties by increasing the clear height of the structure. Clear height is the height on the interior of a structure that can be used for product storage, and is measured from the floor to the lowest part extending from the ceiling. Most industrial properties built in or before the 1980s have smaller clear heights, generally around 20 feet, while today’s newest industrial real estate often boasts heights of up to 40 feet or more. This can dramatically increase the amount of cubic space available in the facility.

For example, a 100,000-square-foot warehouse with a clear height of 20 feet has 2 million cubic feet, while a structure with the same footprint but clear heights of 36 feet could have up to 3.6 million — that’s 80% more space for storing products. Logistics tenants understand this, with many major companies refusing to even consider occupying assets with clear heights under 30 feet.

Unlike many other characteristics of most commercial real estate, clear heights are practically unchangeable. Boosting a structure’s clear height would more or less mean rebuilding the property, after all. Because of this, it is important to choose an industrial asset with clear heights that ensure it stays in demand in the years to come.

For more information, please see Picking the Right Industrial Investment and What to Know Before Making Your 1st Industrial Property Investment.