Warehouse or factory? Choosing the right asset type for a logistics investment
Warehouse and factory are not one category for logistics investors. Operation profile, racking, crane needs, office ratio and tenant pool drive different investment decisions. A 5-layer comparison.
Abdulbaki Yetis
Environmental Engineer | Real Estate Advisor
A logistics asset must be designed for the correct use profile. The wrong category combined with the wrong tenant produces continuous vacancy and conversion cost.
1. Operation profile: what is being stored?
General cargo, cold storage, hazardous-material warehouse, e-commerce fulfilment center, automotive aftermarket warehouse — each requires different design criteria. Clear height, racking, temperature control and fire protection differ.
An investor saying 'warehouse investment' must clarify the sub-segment. General-purpose warehouse accepts lower rent but stays full year-round; specialized warehouse commands higher rent but addresses a smaller tenant pool.
2. Clear height and racking system
Modern warehouses have a 10-12 m clear height standard. E-commerce fulfilment can reach 14-18 m. Clear height determines how many pallet levels can be stacked, and storage capacity per m². An 8 m ceiling is insufficient for a contemporary logistics tenant.
3. Fire protection (sprinkler, ESFR)
Fire load in a logistics facility is much higher than in residential. ESFR (Early Suppression Fast Response) sprinkler systems are standard requirements. Hydrant corridor, fire-water tank and smoke evacuation must be in the layout.
4. Office ratio and social areas
Pure warehouses run at 5-8% office space. Fulfilment or automotive aftermarket operations — heavy on personnel — require 10-15% office + social space. This ratio drives the interior layout.
5. Tenant pool and value multiplier
For the logistics asset investor the key question is: which tenant pool will use this facility? 3PL operators (DHL, Kuehne+Nagel, Arkas Logistics), e-commerce players (Trendyol, Hepsiburada), automotive aftermarket, FMCG distributors — each carries a different design tolerance and price sensitivity.
On site I have seen this: a 'general-purpose warehouse' can serve every tenant pool but is ideal for none. Exit value and rent multiple consequently stay low. Specialization for a sub-segment generates premium.
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Author
Abdulbaki Yetis
Environmental Engineer · Founder, Lizaz Emlak
Roughly 15 years of industrial-construction site experience. Active assignments at DP World Yarimca port projects, Yildiz Demir Celik steel facility, the Tezcan Galvaniz plant and Symbol Kocaeli shopping mall + hotel + hospital mixed-use project. Reads real estate not as a listing, but as an engineering problem at the intersection of zoning, operations, infrastructure/environment and financing.
Practice areas: industrial real estate · factory and warehouse feasibility · OSB vs. off-OSB investment comparison · residential land and urban transformation · EIA and environmental permit assessment · strategic site selection across the Marmara corridor.
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