The Rise of Multistorey Warehousing 

Multistorey warehousing is reshaping our cities, as well as the commercial real estate landscape.

Market trends
Multistorey Warehousing

The industrial asset class in commercial real estate is undergoing a big transformation with the rise of multistorey warehousing. The rise of big e-commerce giants, such as Amazon, has created a need for storage facilities and warehouses to be closer to customers, who are living in increasingly urbanized areas. The traditional model of horizontal warehouses, built on the edge of a city, is giving way to a vertical solution that is compact enough to fit in more urban areas. In this blog we delve into the important role multistory warehousing plays in commercial real estate. 

Multistory Warehousing and Commercial Real Estate

Multistorey warehousing is very intimately linked to commercial real estate, from increasing value of properties to revitalizing areas and even affecting zoning laws. 

Adaptive reuse is a trend in which developers are increasingly repurposing existing buildings, such as old residential sites, factories and big retail spaces, into multistorey warehouses. These developments bring a new lease of life into underutilized properties and increase their value on the real estate market. 

The development of multistorey warehouses often aligns with urban development projects. These developments and the resulting revitalization of neighborhoods and industrial parks enhance desirability of the area, by creating opportunities for new offices, retails spaces and increasing the value of real estate. 

The surge in demand for multistorey warehousing often translates into higher property values, which in turn presents lucrative investment opportunities for real estate developers and investors. However, not only private investors are interested in these properties. Local governments and municipalities are recognizing the importance of multistorey warehousing in revitalising neighbourhoods and supporting local economies. To attract more development into the area, local governments are adjusting zoning laws and regulations to accommodate this warehousing trend. 

Challenges and Considerations 

Despite offering great solutions to the issue of space and proximity to customers, multistorey warehouses do not come without challenges. 

These warehouses often rely heavily on automation to maximize the space they occupy. This requires a substantial initial investment in new technology and makes technological integration a key feature to address in the development process of a multistorey warehouse. 

Adhering to local laws and regulations is a key consideration when developing new multistorey warehouses. Developers must navigate complex series of local laws and regulations. This potentially requires compliance monitoring as well as continual adjustments to the space to avoid legal issues during and after construction. 


Multistorey warehousing is reshaping our cities, as well as the commercial real estate landscape. These warehouses are rising due to expanding industries, such as e-commerce and growing urbanization, as well as the need for more sustainable storage solutions. As such, multistorey warehousing offers great opportunities for real estate developers and investors. 

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