Calculating Section Eighteen Diminution in Industrial Property Reversionary Valuations
Section 18 caps industrial dilapidations at actual reversionary value loss, stopping landlords from recovering repair costs that exceed open market impact.
Clear Eaves Height
Meaning
The vertical distance measured from the finished floor level to the underside of the lowest structural element of a building’s roof determines the usable storage volume of a warehouse. This clear eaves height establishes the physical boundary for high-bay racking systems and automated retrieval machinery. It excludes low-hanging pipes, sprinkler systems or light fixtures.
Storage Capability
Vertical space utilization is directly limited by the lowest beams of the steel portal frame. When planning a distribution hub, the clear eaves height determines whether a five-tier or six-tier racking layout is feasible. Choosing a building with insufficient height forces a reduction in total pallet capacity.
Operational Efficiency
Modern logistics facilities require vertical clearance to accommodate high-speed lift trucks and robotic crane systems. A higher clear eaves height reduces the footprint needed for a given volume of inventory, making the facility more cost-effective. Choosing a lower height limit restricts future automation options and reduces the resale value of the building.
This dimension is verified during the transition from warehouse shells to active fulfilment centres, where incorrect ceiling clearances can block conveyor runs or overhead duct installations.
Structural Measure
Real estate developers measure the height from the finished concrete slab to the underside of the haunch of the roof rafters. This structural measure remains a fixed attribute of the industrial unit throughout its operational life. Calculating this dimension incorrectly can prevent standard-sized delivery vehicles or mechanical lifters from operating safely within the loading zone.