The present work aims to define horizontal joint dimension tolerances for newly proposed prefabricated façade systems for applications in tall cross laminated timber (CLT) buildings based on the compression perpendicular to grain characteristics of the component. This requires a thorough understanding of structural settlement under vertical loads which can vary at each floor height. An experimental program has been carried out with reference to the case of a platform frame building construction, where major perpendicular to grain compression of the floor can occur under high loads. Five-layer CLT specimens have been tested under compression via the application of a line load with steel plate as well as actual CLT wall specimens. Strengthening contribution using full threaded self-tapping wood screws has also been investigated. Results of deformation characteristics have been validated through a non-linear finite element analysis and further elaborated in order to outline implications in the design of a prefabricated façade.