OP, anything below a density of .25 you can use K8.0 heads but would it really be worth it?
But you need to ask yourself is it really worth it?
If the building is 40,000 sq ft with todays construction cost I have no doubt the cost of the building is $50/sq ft on the low side and we're talking $2 million dollars and that is on the low side.
You need to ask yourself this question "Knowing what I know if I owned the building what would I want the design to be?" After spending $2 million dollars do you really think the owner is going to get all excited about saving $2,300 sprinkler in material costs after spending millions on the building? Really?
You need to remember the client will never know what you know about sprinklers and the client is relying on you to take care of him.
If the job were mine here is how I would handle it.
I would work up the cheapest price explaining in my proposal exactly what the design is and what it covers giving some examples.
Next thing I would do is provide some alternates saying "knowing what I know we could design the building for rack storage of Class III commodities to a maximum height of 17'-0" for an additional $x,xxx.xx". Tell the owner exactly what a Class III commodity is giving some examples. Tell the owner you are concerned that if he pays for a Class I commodity if he ever changes, and I can guarantee you that over the next 25 years it will change, the design doesn't fit the hazard and there could be real problems with the AHJ and insurance carriers.
The world changes and when I started designing in the mid 1970's we didn't have anywhere near the amount of plastic products we have today. Back then all the mayonnaise jars were glass but everything today is plastic.
So I would give some examples of what he might consider and by doing so you are letting the decision be totally his.... my guess would be he would go for spending more money because he didn't spend $2 million dollars to end up with a piece of garbage because someone saved a couple bucks.
Treat your customer how you would want to be treated knowing what you know. You are the expert.
And make sure you get a signed owners certificate.
And that is my two cents worth.