The demand for multi-story industrial properties has been on the rise due to the growth of e-commerce. These facilities, which are typically located near high-density population centers, offer multiple levels of loading and access for trucks. CBRE defines a true multi-story building as one that was built after 2018 and is situated near urban areas.
Currently, there are five existing multi-story facilities in the United States and six more under construction. New York has the highest inventory level with four existing buildings totaling 2.7 million square feet and four more under construction totaling 3.7 million square feet.
While rents vary by market, these properties tend to have higher rates due to their expensive development costs on valuable land close to city centers or ports of entry. Some leases may also include fees for tenant parking.
Multi-level industrial buildings were first developed in Hong Kong and Singapore before expanding globally to meet demand from last-mile delivery companies, e-commerce retailers, third-party logistics providers (3PLs), retail distributors,and other tenants such as utility service providers or fleet storage operators.
For example:
– A facility in Vilvoorde,Belgium is used for parcelsand fresh food
– In France,a furniture retailer occupies a space within Gennevilliers Logistics Centre
– Germany’s FourParx campus houses an aircraft manufacturer,furniture company,e-commerce retailer,and information/tech service provider across its1 .3million-square-foot property
