It’s clear how clear heights matter.

In the 1980s, warehouse construction commonly featured clear heights of around 20 feet. In contrast, today’s newly-built Class A distribution centers typically boast clear heights ranging from 32 to 36 feet. This substantial increase directly enhances the storage capacity of facilities geared toward e-commerce fulfillment, often improving space efficiency by 10 to 25 percent.

Looking ahead, this trend is expected to shift the market landscape considerably within the next 12 months. Currently, the pricing difference between warehouses with 18-foot clear heights and those with 32-foot or higher clear heights remains relatively narrow. However, it is reasonable to anticipate that over time, clear height will become a more significant factor in pricing differentiation—unlike the relatively uniform pricing observed during the past three years.

As a result, we expect prices for lower clear height buildings to decline, making accurate pricing adjustments for the optimal product offering an essential consideration moving forward.