How much does a warehouse cost?
How much does a warehouse cost?
$25 – $65 average cost per square foot
$250,000 – $650,000 average total cost (10,000 square feet)
Cost to build a warehouse
The average cost to build a warehouse is $25 to $65 per square foot or $250,000 to $650,000 total for 10,000 square feet, not including the cost of the land itself. The total warehouse construction cost depends on the building method, location, size, and inventory.
| Warehouse type | Average installed cost (per square foot)* |
|---|---|
| Prefab metal shell | $25 – $30 |
| Tilt-up construction | $40 – $50 |
| Steel-frame construction | $50 – $65 |
*Not including the cost of the land, utility setup, lighting, or racking
Prefab metal shell: Contractors bolt together prefabricated components on-site. This option is fast and affordable but requires more work to make it usable after the initial setup.
Tilt-up construction: Builders pour concrete on a horizontal surface and later tilt it upwards to form the warehouse walls. This option is best for smaller, simpler structures.
Steel frame construction: This traditional method involves using steel beams and concrete or masonry for the walls and roof. It's more flexible for large or complex designs but much more costly than other methods.
Warehouse prices by size
When building a warehouse, the square footage of the structure has a major impact on the total cost. The table below shows the estimated construction costs for different warehouse sizes:
| Dimensions (feet) | Size (square feet) | Average installed cost* |
|---|---|---|
| 40 x 60 | 2,400 | $60,000 – $156,000 |
| 50 x60 | 3,000 | $75,000 – $195,000 |
| 50 x80 | 4,000 | $100,000 – $260,000 |
| 50 x100 | 5,000 | $125,000 – $325,000 |
| 60 x100 | 6,000 | $150,000 – $390,000 |
| 80 x 80 | 6,400 | $160,000 – $416,000 |
| 80 x 100 | 8,000 | $200,000 – $520,000 |
| 100 x 100 | 10,000 | $250,000 – $650,000 |
| 100 x 150 | 15,000 | $375,000 – $975,000 |
| 100 x 200 | 20,000 | $500,000 – $1,300,000 |
| 100 x 300 | 30,000 | $750,000 – $1,950,000 |
| 100 x 400 | 40,000 | $1,000,000 – $2,600,000 |
| 100 x 500 | 50,000 | $1,250,000 – $3,250,000 |
*Not including the cost of the land, utility setup, lighting, or racking
Warehouse construction cost factors
Several factors affect the cost of building a warehouse:
Inventory type: The function of the warehouse and necessary features will affect the construction cost. Cold-storage warehouses cost $150 to $170 per square foot to build on average.
Design: Complex designs and layouts require more materials and labor from the construction team as well as engineers.
Material costs: Standard metal wall or roof panels cost less than a complex building with concrete, glass, and insulated metal panels (IMPs).
Site preparation: You'll pay more for clearing and leveling land and utility setup costs.
Location: Property values and geographic location may determine land and building costs, with prices reaching up to $200 per square foot in some areas. Local regulations and building codes may also require specific materials or standards.
You can maximize storage space in a smaller warehouse by investing in sturdy shelving. This allows for smaller square footage and better organization.
Labor
Before you can start building a warehouse, you’ll need to hire professionals to help you evaluate the land for safety, design the structure, and build it. The rates of the following contractors will affect the cost of a commercial construction project:
| Professional | Average hourly rate |
|---|---|
| Architect cost | $100 – $250 |
| Structural engineer cost | $100 – $220 |
| General contractor cost | $50 – $150 |
| Electrician cost | $50 – $130 |
| Plumber cost | $75 – $150 |
Tips to keep in mind when building a warehouse
Operating a well-functioning warehouse can be costly, particularly if inefficient practices are in place. However, there are several strategies you can implement to reduce expenses and optimize operations:
Use natural light or skylights to reduce energy bills.
Install insulation and control humidity to prevent damage to merchandise.
Add voice-enabling technology to help with inventory control.
Interact directly with clients and eliminate intermediaries.
Utilize pest control to prevent damage to the inventory.
How much does it cost to rent a warehouse?
The cost to rent a warehouse is $8 to $10 per square foot per year on average. You can rent a warehouse for business needs such as storage, distribution, or inventory management. Renting instead of building offers flexibility, cost-effectiveness, and access to prime locations without the upfront investment of purchasing property.
FAQs about building a warehouse
How long does it take to build a warehouse?
The time it takes to build a warehouse depends on the size, complexity, location, and materials. Construction timelines range from 2 to 8 months for standard warehouses, with larger or more technologically advanced facilities taking longer.
Permitting, site preparation, and design phases can significantly extend the overall timeline, sometimes up to 12 to 24 months for large-scale projects. Delays may occur due to weather conditions, labor shortages, material availability, or regulatory requirements.
Can I build a warehouse on my property?
Zoning laws normally do not allow building a warehouse on residential property unless the authorities grant a rezone or variance to allow commercial or industrial use. You would need to apply for rezoning or seek approval for mixed-use development, which can be a complex process involving public hearings.
Consult with zoning experts or local authorities to determine feasibility and legal requirements in your area.
Getting estimates from commercial construction companies
Follow these tips to ensure you find the best commercial construction contractor near you:
Get quotes from multiple builders to compare prices and services.
Read reviews and testimonials on trusted websites like HomeGuide and Google.
Give the contractors detailed specifications, including the size and any custom features you want.
Ask for a cost breakdown that includes all material and labor costs.
Ask about the warranties they offer on both materials and workmanship.
Questions to ask a warehouse contractor
When hiring a warehouse building contractor, ask these questions to make sure you're getting a qualified professional for your project:
What is your experience with similar warehouse projects?
Is your safety record solid?
Are you familiar with local building codes?
Can you supply references?
What is the estimated cost? What does that include?
What building method will you use for the roof and walls?
How do you ensure quality and professionalism?
Do you offer warranties or guarantees on your work?
How soon can construction start?
Will you perform a site inspection before starting?
What site prep will you need to do?
Will you hire any subcontractors?
How much feedback can I give during the process?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.