The demand for multi-story industrial properties is on the rise, driven by the growth of e-commerce and the need for facilities near densely populated areas. These buildings, which offer multiple levels of loading and are typically located in or near urban centers, have become a hot subsector within the industrial real estate market.
According to CBRE’s article “Multi-Story Facility Growth Continues,” there are currently five existing true multi-story (TMS) buildings in the United States and six more under construction. These facilities differ from traditional multi-level buildings as they feature internal floors or mezzanine space rather than separate stories.
New York has seen significant development in this niche with four existing TMS properties totaling 2.7 million square feet and four more under construction totaling 3.7 million square feet. Other major markets include Seattle, Chicago, San Francisco (with two TMS projects planned), Hong Kong, Singapore, Belgium (107600-square-foot facility used for parcels and fresh food), France (645000-square-foot Gennevilliers Logistics Centre containing a furniture retailer) , Germany(1 .3million -square foot campus home to an aircraft manufacturer,furniture company,e-commerce retailer,and information/tech service provider).
While rents vary by market,TMS properties tend to command higher rates due to their expensive development costs including high-cost land prices.Some leases may also include parking fees ranging from $10-$25 per square foot.CBRE reports that most TMS leases range between $30-$40 per square foot.
In conclusion,the demand for these unique industrial spaces continues to grow as companies seek out efficient last-mile delivery solutions,closer proximity to customers,and access points near ports.These modern facilities cater not only towards e-commerce businesses but also retail distributors,fleet storage operators,and utility service providers,making them versatile options within today’s evolving commercial real estate landscape.
