Industrial Clear Height Premium Calculator

Clear height drives industrial tenant capacity and rent premium.

Square footage

Current clear height (ft)

Target clear height (ft)

Premium per foot / SF

Base rent / SF

Annual rent premium

$450,000

Height uplift (ft)

New rent / SF

$9.80

How the math works

Uplift = target − current. Additional rent/SF = uplift × premium/ft. Annual = SF × additional rent.

36' − 24' = 12' × $0.15/SF × 250k SF = $450k/yr premium. New rent $9.80/SF.

How to Use

Enter square footage.
Enter current clear height ft.
Enter target clear height ft.
Enter rent premium per inch ft.
Enter base rent per sqft.
Read annual premium value.

Frequently Asked Questions

Why clear height?

Clear height = floor to lowest overhead obstruction (not ceiling peak). Determines vertical storage capacity — 24' clear can stack 2 pallets; 32' can stack 3; 40' can stack 4. More stack = more storage per sqft = more revenue per sqft for tenant. Tenant pays premium for height. New construction: 32-40' clear becoming standard. Older facilities: 20-28' typical. Retrofit is expensive.

Rent premium by height?

20-24' clear: baseline. 24-28': +$0.15-0.30/SF/yr. 28-32': +$0.35-0.75/SF/yr. 32-36': +$0.75-1.50/SF/yr. 36-40': +$1.50-2.50/SF/yr. 40'+: +$2.50+/SF/yr premium. Premium varies by market demand: West Coast / Jersey port / ATL distribution premium highest; secondary markets lower.

Construction cost?

Building at higher clear height costs 5-15% more than standard. 32' clear vs 24': ~8% higher cost. 40' clear: ~15% higher. But rent premium usually pays back in 8-15 years at current cap rates. Institutional developers build to market — 32-36' in primary logistics markets, 24-28' in secondary. Building below market height = cap rate penalty at sale.

Tenant fit considerations?

Tall clear height favors: e-commerce fulfillment, automated storage (AS/RS), racking-intensive operations. Less useful for: manual picking, food distribution with limited stacking, manufacturing with equipment clearance needs. Don't build to maximum height just because — match to likely tenant mix in your submarket. Over-building height is an expensive design error.