Imagine you’re about to lease an industrial building and you only ask: “How many square meters is it?” Sounds logical… until day one of operations, when you realize the problem wasn’t the size, it was the type of building.
Because a building designed for storage doesn’t operate the same way as a cross-dock facility, an e-commerce fulfillment center, or an urban last-mile hub. Flows, time, and operating costs change and in many cases, so does the overall success of the operation.
So before focusing on price per m², it’s worth answering a smarter question: what type of industrial building does your operation actually need? And then a second one: what does it mean when a building is Class A, B, or C? Here’s a no-fluff explanation, with clear examples.
Why Square Meters Aren’t the Starting Point
Square meters tell you “how much fits,” but not necessarily:
- How fast product can move in and out
- How much time is lost in truck maneuvering, internal travel, or dock queues
- How expensive it is to operate (labor, equipment, energy, downtime)
- Whether the building can handle peak demand (high season, major sales events, campaigns, returns)
In other words: a building can be “big” and still be the wrong choice if its design doesn’t match your process.
Types of Industrial Buildings by Use (and How They Feel in Operations)
Storage (Warehouse)
Used to store inventory and keep it organized.
Operational priority: cubic capacity (clear height), racking, order, safety, and aisle efficiency.
Typical signs: less daily turnover than a DC; layout is everything.
Distribution
Designed to receive, pick, and dispatch efficiently.
Operational priority: flow, enough dock doors, truck courts, internal routes, staging areas.
Typical signs: more inbound/outbound, more labor, and heavier dock activity.
Cross
Product moves in and out quickly, with minimal storage.
Operational priority: speed and transportation synchronization.
Typical signs: dock doors on opposite sides (or a configuration that supports “crossing” freight), high coordination, low inventory.
Fulfillment
Runs like a machine for picking, packing, returns, and high turnover.
Operational priority: zone-based layout, packing stations, returns processing, control, intensive operations.
Typical signs: more internal processes than a traditional DC; flow design is critical.
Last-Mile / Urban
Operates close to the final customer to reduce delivery times.
Operational priority: location, access, speed, delivery windows, vehicle agility.
Typical signs: value isn’t “more space,” it’s getting there faster.
Manufacturing
In addition to storage, the facility produces or assembles.
Operational priority: power capacity, infrastructure, industrial safety, ventilation, technical areas.
Typical signs: high electrical demand, compliance requirements, and specific working conditions.
Flex (Mixed Use)
Combines warehouse + offices / showroom / service.
Operational priority: versatility to change uses or scale in phases.
Typical signs: ideal for companies with customer service, after-sales, or technical support needs.
Cold Storage (Refrigerated / Frozen)
Refrigerated or frozen operations.
Operational priority: insulation, equipment, doors, temperature control, and energy efficiency.
Typical signs: energy costs are significant; technical specs must be precise.
What Each Building Class (A, B, C) Means in Practice
Quick note: “class” can vary by market and corridor, but the real rule is always the same: specifications + functionality for operations.
Class A (High Standard)
Newer buildings or recently modernized, designed for intensive operations. Typically offer:
- Better operational efficiency (roomier truck courts, better access, smoother traffic flow)
- Better dock setup (more doors, better door positions, faster operation)
- Capacity for peak demand and scaling (e-commerce, demanding 3PLs, high season)
In practice: you may pay more per m², but often operate at a lower total cost.
Class B (Good Standard, Older Generation)
Functional buildings in good condition, but with some limitations vs. Class A: it might be clear height, truck court depth, dock count, finishes, or infrastructure (electrical, lighting, etc.).
In practice: often the best balance between solid operations and controlled cost.
Class C (Basic / Older or Adapted)
Older buildings or lower-spec facilities. They can work if your operation is stable or if cost/location is the priority, but they usually have more constraints:
- smaller truck courts
- fewer dock doors or difficult maneuvering
- lower clear heights
- challenging access
- limited power/infrastructure
In practice: it can work, but you need to accept limitations and quantify the operational impact.
Essential Pre-Lease Checklist (5 Items That Prevent Surprises)
Before signing, validate the essentials:
- Clear height: defines your true cubic capacity and your racking/process layout.
- Truck court: if you’re short here, you’ll pay in time, stress, and queues.
- Dock doors: quantity, distribution, and function (your pace depends on this).
- Floor slab: load capacity, flatness, and condition (equipment and safety).
- Power: available capacity, growth potential, stability (especially for intensive operations or manufacturing).
These five points prevent most operational surprises. And if something doesn’t fit, it doesn’t mean it’s a “bad building”, it means it may not be the right building for your operation.
Closing & CTA
If you want to play it safe, at O’Donnell we specialize in industrial spaces. Write to us and we’ll gladly advise you to identify the building that best fits your operation and timeline.
