Industrial Warehouse - Tilt Panel vs Combination

Discussion in 'Commercial Property' started by NWHT, 14th Jan, 2021.

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Which would you prefer to own / invest in?

  1. Tilt Panel - All Concrete

    7 vote(s)
    77.8%
  2. Combination - Mixture of construction materials

    2 vote(s)
    22.2%
  1. NWHT

    NWHT Well-Known Member

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    Hi All,

    Interested in opening up a discussion on Industrial Warehouses, specifically the construction method/type when comparing tilt panel vs a combination. For reference, see the attached image.

    Tilt Panel: Set on a reinforced concrete base, all Concrete walls, typically steel roof.

    Combination: Set on a reinforced concrete base, concrete walls extend only to a particular level (say 2.7m for security) then steel frame and cladding to top height, typically steel roof.

    For members who are experienced in this type of development, I would be interested to hear your opinion on the following queries;

    1) Cost difference between the two types of construction.
    From my understanding, the turn-key cost of a tilt panel warehouse is between $1100 - $1300 depending on the finish. For the combination warehouse, it is slightly lower at $700 - $900. From your experience, how realistic have you found these figures to be?

    2) On-going Maintenance
    As the landlord is generally responsible for repairing and maintaining major structural aspects of the building including the roof, is there any benefits of one style over the other?

    3) Perceived Value
    This could be broken up into three parts
    - Perceived Value from financiers (valuers)
    - Perceived Value from tenants
    - Perceived Value from future investors/buyers
    For the points above, if we can assume that both warehouse styles provide the necessary security for the leasee due to the height of the base concrete walls, then does it really matter what the upper section of the warehouse is constructed from?

    Does anyone here believe that either type of warehouse generally outperforms the other in terms of the ability to obtain a leasee and valuation, or is there no real difference between them?

    If you think there are other points that I should add to this discussion, please send them through!

    Thanks in advance for your comments and opinions.


     
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  2. kmrr

    kmrr Well-Known Member

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    Melbourne
    Hi NWHT

    i work for a commercial builder and our bread and butter is 10,000sqm + warehouses (and cold stores). We always go with a dado panel and metal clad roof and wall sheeting because a full height wrap of precast would be too expensive.

    I have noticed however that the smaller developments (sub 1000sqm) use full height precast panel walls and metal roof sheeting only. i presume they do this because it is much faster to just erect a precast panel that probably ties the structure together than have to get another trade in to do the metal clad walls as well.

    security is not a consideration when using these materials however precast does offer a better fire protection rating.

    both types will have a metal clad roof which is where you may have maintenance issue. typically you'll get more leaks from a screw fix sheet than you will from a kliplok product that doesn't require fixings to penetrate the sheet. you may investigate which product has been used on any potential purchase. that said, a leak is usually pretty easy fix and just requires a glob of silicone around the screw. people are also known to stand on roof sheet ribs and tear them so be careful when on a roof.

    all in all i don't believe there is much difference between them from a perception POV and the difference has more to do with construction costs.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Construction material will be dictated by the building class ie requirements for fire resistant construction, compartmentation, proximity to boundaries etc. Refer to NCC.

    Selection of methodology - precast (delivered to site from factory) or tilt-up (poured on ground at the site then erected. This is largely dictated by the space available on site, price advantage, timeframe on site/lead time (design, approval of shop drawings, manufacture, curing, delivery, availability of skilled site labour).
     
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  4. Property Guts

    Property Guts Well-Known Member

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    From an investor, non-developer perspective on industrial,500sqm to 2000sqm. I want 100% concrete tilt up every time because - it has better insulation, better security, longer lasting, looks better - it is better. Tenants just cane steel sheds, forklifts crumbling walls etc. Plus, with concrete tilt up it's build up to the boundary, steel is keep 3m from the boundary for fire regulations, so better site coverage, and better economy of scale.

    So do a variation on The Three Little Pigs fable swap straw, sticks and brick for zinc, brick, concrete.

    But as KMRR says, on a 10,000sqm site those issues are irrelevant.
     
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  5. kmrr

    kmrr Well-Known Member

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    I agree with the sentiment of your post but would like to make 2 amendments that may or may not be relevant in the grand scheme of things

    1 - concrete panels don't have any insulation properties. we treat panels as having an R Value of 0.1. the bare minimum for external partitions is R2.0 and R3.2 for rooves which is always achieved using insulation.

    2 - i would really hope forklifts aren't crumbling walls because usually you have a precast panel for the first 2.1-2.4m and metal sheeting above!
     
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  6. CTSB

    CTSB Well-Known Member

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    Plenty of warehouses have racking extending to 10-12m well above the concrete dado walls. I think thats what he was probably referring.

    Denting the walls with pallets, stillages, rods, materials on the tines of the forklift rather than the forklift body itself.

    Crumbling colorbond walls are pretty common in factories with highbay racking almost always set againt the outside walls.
     
  7. kmrr

    kmrr Well-Known Member

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    I had a forklift/pallet hit a sprinkler main once on a project i finished. 8000 sqm WH flooded :p
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Did he try a second time?
     
  9. kmrr

    kmrr Well-Known Member

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    I would hope that all floor staff learnt a lesson very quickly for the tenants sake!
     
  10. CTSB

    CTSB Well-Known Member

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    I popped a sprinkler on the top rack working in a carpet factory as a 16 year old during my school holidays.

    Top racks were probably 15m or so high, needed camera’s on the carpet spike on the fork tynes to see them.

    Proceeded to flood 20,000m2 of carpet.
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Mop & bucket to asile 4. :oops:
     
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