What is a Warehouse?

 A warehouse is a structure that is designed and utilized for the storage of

wares, goods, and merchandise.
 Considered as subsection of industrial property as they are used in
conjunction with manufacturing industry.
Distribution Warehouse
 Modern distribution buildings feature a minimum clear height of 24ft and
contain one or more dock-high loading doors for every 10,000 sq.ft. or space
(Appraisal Institute 2004).
 The goal is to stack as many products as possible in the property and the
valuable time in transit is not wasted on properties of insufficient design.
Bulk Warehouses
 Commonly contain single tenants
 Prudent investors would want to determine financial health of the
prospective tenant before signing them to a long term lease, or purchasing
the property under an existing lease arrangement.
Storage Warehouses
 Structures which are designed for the storage of wares, goods, and
merchandise where obsolescence has occurred
 Ceiling heights may be lower than is desirable and or loading capacity may
not be up to the current standards.
 These buildings are used to store inventory with low turnover where time is
not as crucial.
Service Warehouse
 Typically contains more office space than in distribution or storage
warehouses.
 Have lower ceiling heights than bulk warehouses, approx. at 18ft.
Flex Space
 Contains glass on three of the outer walls and has additional parking relative
to other warehouse properties (Appraisal Institute 2004).
  80/20 split of warehouse and office space is enough to be classified as flex
space, although as name implies, any composition up to a 50/50 designation
is possible for flex space.
Office Showrooms
 Approx. 50% of interior is finished and higher amount of parking as
compared with other warehouse properties.
 Typically located along a freeway or other major through fare where the
traffic exposure of the property can be exploited for direct retail sales.
 Interior build favors sales floor orientation rather than office design, with the
balance of space devoted to warehouse and stock.
Office Warehouse
 Better curb appeal relative to bulk warehouses.
 Typically, multi-tenant facilities, with office space ranging from 25% to
50% of the total space.
 The warehouse ceiling clearance for office warehouse is lower than that of
bulk and service warehouse.