JLL report outlines 'tremendous potential' for multi-story warehouses

A new category of buildings, multi-story warehouses, is beginning to take hold in the U.S. and their potential is strong.

A handful of such facilities, also called “urban logistics buildings” have been built over the past five years, notes a new report by JLL. Multistory warehouses have loading docks and truck ramps on multiple levels. Some facilities employ hydraulic and gantry cranes when truck parking is limited.

“While the U.S. multistory and urban logistics landscape is currently very much in its infancy, there is tremendous potential in the future of multistory and urban logistics in both the established urban logistics markets and emerging logistics markets,” JLL says.  

Land availability and zoning ordinances are the primary challenges for growth. San Francisco, Los Angeles, Boston, and Philadelphia are the most promising markets, JLL says. Emerging markets include Atlanta, Miami, Dallas, Houston, and Seattle.

Due to a shortage of available land, developers are likely to look for existing buildings for conversions. To offset the carbon footprint of urban logistics buildings, developers can include EV charging stations, rooftop solar panels, and greener delivery methods.