High Bay vs Low Bay Warehousing: Which Is Best for My Business?

High bay or low bay,  the choice can shape everything from how you use your space to what you spend on land, construction, and compliance. And with factors like racking layout, fire regulations, site size, and future growth on the table, it’s worth getting clear on the pros and cons before locking anything in. 

Let’s break it down. 

What do “high bay” and “low bay” mean? 

• Low bay: Buildings up to around 5-6.5 metres knee height (often with a max apex under 8m) 

• High bay: Buildings with apex heights over 8 metres, often extending to 10 - 13m for modern racking systems 

Many warehouses built in the pre 2000s fall into the 3 - 4m category. The last 20 years saw common builds in the 4–5m range. But in the last 10 -15 years, demand for vertical space has seen more warehouses rise to 7-13m in height. 

But is high bay always better? Not necessarily. Not sure what height you need? Our guide to selecting the right building height walks you through six key factors to consider early on. 

When does high bay warehousing make sense? 

If you’re storing product, and especially if you’re storing a lot of it, going higher can boost your usable space significantly without increasing your land footprint. That’s a win in locations where land is tight or expensive (like Auckland). 

It makes sense to go high if: 

• You're in a high land cost area  

• You need efficient vertical storage for pallets, cartons, or boxes 

• Your product type allows for high racking 

• You want to maximise cubic metres per dollar of land cost 

• You're building over 4,000–5,000m², where the ROI on height usually improves 

We recently had a client considering a 1,500m² high bay warehouse. On paper, the extra height gave them more volume - but in practice, the extra cost didn’t justify the relatively small gains for their operation. Instead, they opted for a slightly larger footprint and gained an extra bay of floor space - which was more valuable for their layout and equipment. 

If you're going high, the racking layout becomes even more important - we cover key design tips in our racking systems planning guide. 

When is low bay the smarter move?  

In regions where land is more affordable (around $500/m² or less), or when your site allows for it, increasing your building’s footprint can be more economical than increasing the height. 

For example, building a 4,000m² warehouse at 8m might be more cost-effective than a 3,000m² warehouse at 11m, once you account for the structural upgrades, fire compliance, and racking costs required at those heights. 

Low bay also makes sense when: 

• You’re storing bulky, oversized products that don’t stack well 

• You don’t use high-reach racking 

• You’re running a low-clearance workflow (e.g. assembly, sorting) 

• Your building use doesn’t justify increased vertical load design costs 

Even in low bay buildings, smart design can unlock more usable space - see our article on maximising internal area for tips. 

The fire compliance wildcard 

Once you build over 8m apex height and store above 5m, you trigger stricter fire code requirements. 

There’s a common belief that this means you must install sprinklers, but that’s not always the case. 

• Under the C/AS2 fire code, you will need them. 

• Under the C/VM2 code, you may be able to avoid sprinklers if you engage a fire engineer to complete a Verified Method fire report (PS1 + peer review). 

The cost of the fire report under C/VM2 is $30k–$50k, compared to <$4k for a basic C/AS2 report - but it can save you six figures in sprinkler installation and long-term maintenance. 

Attika often helps client’s model both scenarios before deciding. 

What’s more cost-effective:  building up or out? 

There’s no universal answer - but here’s what to consider: 

We recommend working out a cost-per-pallet, cost-per-box, or cost-per-carton for your business, then modelling a few layout options. It’s not just about square metres, it’s about productivity, compliance, and workflow efficiency too. 

Curious about the numbers? Use our cost per m² guide to benchmark typical build costs across different commercial building types. 

So... which is best? 

It depends entirely on: 

• Your storage model (racked, loose, oversized goods?) 

• Land availability and cost 

• Fire code implications 

• Long-term flexibility and resale 

• Budget for build vs land vs compliance 

If you’re operating in a major centre or need dense vertical storage, high bay may be your best bet. If you’re in a regional area with accessible land and your workflow suits a wider layout, low bay may win out. 

At Attika, we help you compare both options. We’ve worked with businesses all over New Zealand to model different height and footprint scenarios - and find the sweet spot that works for their needs and budget. 

Need help figuring out what's right for you? 

Let’s talk about your site, your product, and your plans - and we’ll help you map out the best way forward. 

Ready to talk about your site? Book a consultation or get in touch here