Chicago has become the third largest market in the U.S. to increase warehouse inventory, according to CBRE data. Since 2010, nearly 43.3 million cubic feet of warehouse inventory has been added to the market.
The quick growth of e-commerce industrial building in recent years has resulted in a steady increase in the height and volume of warehouses and distribution centers, according to CBRE. The average height of warehouses has grown from about 24 feet in the 1960s to 33 feet in 2016. E-commerce companies use the extra space to install mezzanine levels allowing them to increase inventory pickers in each building.
Nationally, CBRE recorded 13.7 billion cubic feet of warehouse space that was built since 2010 with 65 percent of that total coming from the 10 largest markets. However, when that same inventory is measured by ground area, it only yields 422.5 million square feet.
“There’s an argument to be made that industrial space should be talked about on a volume basis, not an area basis, because that space above the floor is very important,” said David Egan, CBRE Head of Industrial & Logistics Research in the Americas. “It’s key for labor-intensive users like e-commerce companies, which can put more racks and employees in that additional workable space.”
