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| what is percent of coverage? |
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Definition
| a 20,000 SF building on a 30,000 SF site has 67% coverage. |
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| true or false: Perhaps more than in the other commercial specialties, industrial brokers need to know a lot about building features and the kinds of users who can best use them. |
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| often designed and built for particular manufacturing processes, shipping and receiving; sizes range up to 2,000,000 SF and more; subject to functional obsolescence and limited marketability when the processes become obsolete; frequently include such features as three-phase electrical power, heavy ductwork, buss ducts, pressurized air or water lines, floor drains, high capacity ventilation and exhaust systems, storage tanks and cranes. |
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| smaller, less specialized, with fewer heavy-duty features; used for light manufacturing and assembly operations that do not have extensive physical plant and space requirements. |
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| the generic industrial property, usually consisting of just four walls, roof, and floor, of concrete, block or metal construction; large, averaging 50,000 square feet. Bulk space is often measured in “cubes” (cubic feet). Clear ceiling height, often 20 or more feet, is important to allow forklift operations. Bay depths are in the range of 175 to 250 feet. There is often some kind of special flooring in the structure, as well as reinforced paving around the building, with concrete aprons leading up to the loading areas to withstand the weight of rail and truck traffic. Loading docks may be dock high (at the level of the standard truck bed) or have load levelers to adjust the dock height to the truck bed. Office space, if any, is minimal. Net leases are the norm. |
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| smallest of the industrial buildings (1,000-5,000 SF); often located in a complex which includes support services in or near the complex; often used for warehouse and distribution activities, as well as "incubator space" for small or start-up tenants renting on a short term basis. Tenants usually require at least 18-foot ceiling heights, with efficient loading arrangements, dock-high for some, drive-in for others. Office space use tends to be under 10%. |
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| normally built for one user and a specific use, such as manufacturing, distribution, assembly, packaging, etc.; the owner is frequently also the user/occupant. Construction type, design, ceiling height, utility services, and site coverage vary according to the user's needs. |
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| combines office space, typically less than 25% of the total, with the more typical industrial uses. Construction is usually more substantial and costly than for bulk space, typically metal, brick, block, or wood; low to middle range of market rents; dock-high loading is common. Usually these buildings are located near or within city limits, with good road access. Bay depths range around 125 to 200 feet, less than for bulk uses. Modified net leases, with the owner paying some operating costs, are common for this type of space. The parking ratio is typically 1:500 SF (one space per 500 SF), and land coverage is 40-50%. |
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Term
| Office/service & office/showroom |
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Definition
| ncludes more than 25% office space or showroom space. The combination of office use with more typical industrial uses leads to greater parking needs (ratios of 1:300 or 1:400) and 30-35% land coverage. Construction is usually more substantial than for bulk space. The setting is less "industrial" than that of other types: park-like landscaping, more expensive construction, such as decorative block or brick; rents are toward the high end for industrial properties. Locations are usually on major arteries within a few miles of city limits. |
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| similar to office buildings in basic construction and layout; combine retail display space with onsite storage and distribution. Typically, up to 50% of the space is dedicated to sales. |
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| very-large, single-story structures used primarily for the warehousing and distribution of inventory. These buildings range from 50,000 to hundreds of thousands of square feet under roof and have up to 60- foot ceiling heights to accommodate extensive racking and storage systems. These buildings may have a small amount of office space as well as numerous loading docks, truck doors and large surface parking lots for semi-trailers. Some buildings are served by rail. |
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| similar to office/service, combining manufacturing and office uses. This type is designed to house relatively people-intensive activities and usually must provide special tenant improvements, such as "clean rooms" for electronic component manufacturing, product testing areas, cafeterias, lounges, etc. Rental and sale prices approach those of office space. Location near a university or other source of a skilled and white-collar employee pool is common. Truck and rail access are usually more limited than for other types. The parking ratio is about 1:300, with 25-35% land coverage. |
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| covers a broad range of uses, often combining one or more uses in a single facility, including office, R&D, showroom, light manufacturing, small warehouse and distribution. Ceiling heights are typically under 18 feet, and the percentage of office space is higher than in larger industrial buildings. Constructed to allow for space to be easily reconfigured for different combinations of office and industrial uses. |
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Definition
| highly specialized flex buildings that support different kinds of laboratory work where chemicals, drugs or biological matter are tested. This type requires extensive plumbing and water distribution systems, good ventilation, and specialized utilities. Some include special climate controls, dust control, and heavy power. Like other R&D buildings, these types are often located near the necessary labor pool in campus-like setting with generous landscaping, surface parking and open space. |
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| highly specialized, with reinforced floors to support the weight of heavy electrical equipment, including backup generators and specialized HVAC. They may also include raised flooring to handle cooling and extensive cabling; located close to major communications trunk lines with access to a power supply capable of reliably powering large arrays of computer servers and telecom switching equipment. Also described as telecom centers, switching centers, cyber centers, and web hosting facilities. |
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| Refrigeration/Cold Storage |
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Definition
| specialized with large capacity cold storage and/or freezer space; often used as special distribution centers for products requiring refrigeration. |
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| a single tract consisting of multiple structures designed, controlled and administered by a single owner or, perhaps, an association; may be dedicated to mixed uses or earmarked for a single use, such as science and technology, research & development, or light assembly. Uses are controlled by Covenants, Conditions and Restrictions (CCR's) to assure compatibility. |
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| true or false: a general-purpose building which is in the top 25% of overall desirability in the existing inventory of a given market is usually considered a "prime" industrial building, no matter its class. |
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Term
| class of industrial buildings |
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Definition
Class A--Built of nonflammable materials, with a steel frame and exterior walls, bearing walls, roofs and floors of concrete, steel or aluminum, including doors and window frames. (see IBC Type I below)
Class B--Also nonflammable construction; basically, like Class A except the frame uses reinforced concrete columns and beams. (See IBC Type II below)
Class C--Exterior walls are usually brick; joists may be of wood; two to six stories; need overhead sprinklers, fire doors, fire walls, and fire escapes, because only exterior walls, bearing walls, stairwells, elevator shafts, and doors are fire-resistant. (See IBC Types III and IV below)
Class D--Light-duty, wood frame construction, low floor loads; one or two stories; higher maintenance costs and more flammable than A, B, C or S. (See IBC Type V below)
Class S--Metal frame and skin; floors and roofs may be steel or wood; largely inflammable. |
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| Industrial Structures may also be classified according to construction standards such as the International Building Code (IBC) Table 503, which mostly has to do with combustibility: |
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Definition
TYPE I--concrete and steel structure, noncombustible roof.
TYPE II--steel or concrete walls, floors and structural framework similar to Type I, but roof covering can be a layer of asphalt water proofing with a combustible felt paper covering. Another layer of asphalt may be mopped over the felt paper.
TYPE III--brick and joist structure with masonry bearing walls; floors, trusses, and other structural framework and roof of wood or other combustible material.
TYPE IV--like Type III, with masonry walls, but the interior wood structure consists of heavy timbers; floors and roof of wood. Unlike Type III, Type IV does not have plaster walls and ceilings covering the interior wood framework.
TYPE V--wood-frame construction, with wood studs and load bearing walls, wood floor trusses or joists and wood roof framing. Exterior walls may also be wood. Height is limited. Type V is the only one of the five types that has combustible exterior walls. |
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Definition
Loading--an elevated platform, usually at the same height as the floor of a truck or railroad; may be open on the exterior wall of the building or covered to protect the loading area.
Cross--a loading dock situated along two walls at the corner of same building to facilitate transfers from vehicle to vehicle.
Side-loading--a loading dock configured to permit loading and unloading through the side door of a truck. |
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Definition
Dock-high-- a door that opens at the standard tractor trailer door height (four feet) above the truck court level. Semi-dock or half dock doors open at a two-foot height to accommodate smaller trucks.
Drive-in-- a door that allows trucks and forklifts to enter and exit the facility without a change in elevation.
Ramp-- an incline built from truck court level to dock height, creating a drive-in door.
Rail-- a door designed to allow direct loading and unloading from a rail car; generally, side-loading, with access to a rail spur.
Door-to-square-foot ratio-- the ratio of loading docks and drive-in doors to building square feet. |
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Definition
| The foundation, walls, and roof of a building. |
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Term
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Definition
| Spur--A railroad track belonging to the building owner, connecting to a main line or siding. |
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Term
| Loading and parking areas |
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Definition
Truck court-- the loading and truck maneuvering area adjacent to loading docks. The distance from the building side to the outside edge of the truck court limits truck maneuverability.
Apron-- a reinforced paved area of the truck court for parking trucks while loading and unloading.
Parking ratio-- ratio of standard parking spaces to the gross leasable area of a property; labor-intensive operations need higher parking ratios. |
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Term
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Definition
Bays
Bay-- the area between supporting columns and between the columns and the end wall.
Bay depth-- the distance from the front to the back of the bay.
Bay width-- the distance between the sides of the bay.
Columns
Column-- a vertical structural member that supports a beam.
Column spacing-- the distance between posts or vertical supporting beams; defines the size of the bays. |
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Definition
Beam-- horizontal member supporting roof construction.
Ceiling height-- distance from the floor to the inside upper surface of the room. Hanging objects, beams, joists, and trusses are below this height unless there is a dropped ceiling.
Clear height-- distance from the floor to the lowest object hanging from the ceiling over a substantial portion of the industrial work area; defines the minimum height of usable space within the structure; determines; clearance for pallet stacking, racking, fork truck traffic, etc.
Span-- the length of beam between supports; clear span denotes a building or room no ceiling or roof supports other than the exterior walls.
Truss-- a framework forming a rigid structure, typically a roof support member.
Truss height-- distance from the floor to the bottom edge of a truss support the ceiling or roof; clear height is lower than truss height if there are hanging objects, beams or joists below the truss. |
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Term
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Definition
Super flat-- a concrete floor with minimal variations in elevation; primarily found in automated warehouses where level flooring is necessary for proper operation of warehousing machinery.
Office percentage-- the percentage that is built out for office use. When mezzanine (partial floor) office is built over a work area, the additional square footage is not counted in the total square footage of the building.
Dock high-- an entire floor at truck-bed height.
Truck well-- a ramp down into the floor that brings a truck-door to floor level. |
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Definition
| 3-Phase Power-- an electrical system commonly used for power for heavy loads; small users usually get single-phase power. |
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| Describe some of the major physical characteristics that distinguish the types of industrial space. |
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Definition
size—the largest spaces are designed for specialized manufacturing processes; the smallest are units with multi-tenant buildings.
ceiling height—the greatest heights are probably in warehouse/distribution properties; the lowest are in R&D and flex buildings.
office percentage—combinations of office and industrial functions lead to a range of types, depending on functions; mezzanine offices are hardly counted at all, while warehousing and showroom uses typically have different percentages, ranging from less than 25 % to as much as 50% devoted to office use.
doors, docks, and floors—accommodations for loading and unloading goods and materials, for supporting heavy weights, and for facilitating automated procedures lead to variations in warehousing, manufacturing, and distribution facilities. |
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| Describe the differences in construction materials that distinguish the industrial property classes. |
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Definition
| Classes A-S are distinguished in terms of flammability or combustibility of materials, from framing members to wall, ceiling and roofing materials; shell materials range from wood to steel and concrete, with height limitations for different classes. |
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Term
| Explain the importance of columns and bays as factors determining how suitable industrial spaces can be used. |
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Definition
| Columns and walls define the dimensions of bays; bay width and depth limit the kinds of equipment that can be used; buildings without interior columns offer the greatest flexibility in how floor space can be configured for different purposes. |
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Definition
| Industrial users require a suitable labor pool to operate the facility. Suitability means size, proximity to the facility, prevailing wages and benefits, specialized skills, and competition from other industries in the area. |
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| In addition to good road access, a user may have special transportation needs such as a rail link, containerization facilities, access to air cargo facilities, or special accommodations for truck traffic. |
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Definition
| Depending on use, the user have special power needs including proximity to power sources such as water, electrical, or gas. |
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| Industrial users have to pay particular attention to emissions, waste disposal, water usage, building design and function, paving and landscaping, zoning restrictions, and power usage. |
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| The nature of some industrial uses requires particular features of a location: market-oriented users with significant transportation costs tend to locate near customers; resource-oriented users tend to locate near the source of materials; transportation-oriented tend to locate near the appropriate type of transportation; labor-oriented users look for appropriate labor pools; environment-oriented users locate where they are allowed. |
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| Some uses require more workers per square foot than others do; labor-intensive uses like research & development and assembly operations usually need a high number of workers per square foot or per acre, typically one or more employees for each 200 SF; labor-extensive: operations such as warehousing, manufacturing and distribution need fewer employees, often one or fewer per 1000 SF. |
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Term
| true or false: Industrial demand is directly linked to employment numbers of workers that use industrial space. The key unit of demand is employee square feet (ESF), or the amount of space required for an employee of a certain type. |
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Term
| Describe some of the important locational considerations of industrial users. |
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Definition
Labor pool—users require a suitable labor force and will locate in a place that has the right kind of workers nearby.
Transportation—some users are highly depending on access to rail networks, highways, and air cargo operations; if trucking is critical, the site and facility need accommodation for truck operations.
Utilities—heavy industrial users need the right kind of power and possibly the proximity to power generating sources such as water and gas.
Zoning, use controls, environmental regulation—some uses may not be allowed by zoning, or may be restricted in allowable environmental impact.
Favorable tax structures—tax incentives and tax treatment may be central considerations for some users. |
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Term
| Explain how features like walls and windows might appeal to different types of user. |
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Definition
| Warehouses don’t require as much window exposure as manufacturing and assembly operations do because of different needs for lighting for employees; operations requiring good protection from weather are likely to prefer concrete walls to metal. |
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Term
| Explain how industrial demand can be estimated. |
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Definition
| An average number of square feet of space per type of industrial employee multiplied by the number of existing or projected employees of that type in the market area provides a measure of demand. Estimation of future demand requires information about employees of the type entering and leaving the market area. |
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