How Much Does It Cost to Build a Warehouse?

Estimating the costs of building a warehouse is not easy. There are many costs to consider that might at first notice have escaped your attention, and prices vary depending on what type of warehouse you hope to build, who you hire to oversee the job, and what materials they choose to use. Location, size, and height all also factor into the process.

Nonetheless, it’s vital to get a rough idea of the financial requirements before you start a considerable project like this. So how much does it cost to build a warehouse? 

Below, we have outlined some average costs and what you should consider.

Why Construct Your own Warehouse?

If you are a growing company looking for storage solutions and you are thinking about constructing a warehouse yourself, you have probably already given this careful thought.

• The benefits of constructing your own warehouse as opposed to renting space are simple:
• You don’t suffer the mounting costs of rent over several years
• You are not at the whim of a contract that leaves your wares dependant on another company
• You avoid the risks and wear and tear that comes with renting or purchasing an older warehouse
• You can construct the warehouse to exactly the specifications you need, in whatever way best suits your products and workflow.
• You can start your own warehousing business and rent your space to other companies. 

Just to name a few.

The Factors Affecting Warehouse Construction

Before we look at the average costs associated with building a warehouse, we need to take a look at what goes into the price. 

The Type of Warehouse

Different types of warehouses come with different requirements and as such very different costs.

The most common type of warehouse is a simple storage warehouse, but there are also refrigerated warehouses holding foods and cold items, or controlled humidity warehouses. These are much more technical and will likely require a higher budget.

You may also plan to install automated workflow into your warehouse, with robotic systems and AS/RS Conveyor systems. This considers more than just bulk storage and forklifts.

Materials

Another impactful factor is the type of materials used to construct a warehouse. Most are either built using concrete tilt-up or pre-engineered metal constructions. 

There are pros and cons to both: Pre-engineered metal constructions are less expensive, but economies of scale apply to the materials.

Larger warehouses and distribution centers may save money on the concrete tilt-up method instead as square footage increases. These also have a longer life cycle.

Prefabricated warehouses are easy to set up and significantly cheaper than traditionally built warehouses. These types of warehouses can also be moved to a new site if necessary.

Your contractor should be able to give you information on which material is best suited to your needs.

The Cost to Build a Warehouse

On average, building a warehouse costs about $20 per square foot. But, below are a few more precise estimated costs for pre-engineered steel buildings:

• Building size: 30 x 40
• Estimated price: $11,500
• Building size: 80 x 150
• Estimated price: $14,900
• Building size: 200 x 300
• Estimated price: $426,000

But beyond the preconstructed steel, there are other costs to consider in warehouse construction, such as delivery, windows, and doors, the foundation, construction labor, and fittings within the finished warehouse, such as workflow systems, heating, plumbing, lighting, etc.

Things to Consider When Designing Your Warehouse

Before construction can start and you can even request a quote from contractors, you need to be aware of your warehouse’s design and requirements.

Size and material are not the only things to consider here, as we have touched on above.

You need to find the right location and get ready to open your warehouse for operation, whether you intend to use it for your company only or as an investment to rent out to other businesses. 

You’ll also need to think about:

• Building regulations and planning permissions. This may present an additional cost as the application usually comes with a fee. Make sure you read local building codes to make sure you are compliant.
• The floor and floor coating. Warehouse flooring is more important than you might think, as depending on what you store, the floor will have to withstand a great deal of weight or weather chemicals. Investing in quality floor coating is essential to withstand high traffic.
• The height of your building (overall height and interior clearance.) Zoning laws may regulate these, but the clearance height will have a meaningful impact on your design decisions as it affects the room you have for interior applications.
• Roof shape and pitch. Increased Pitch gives your building more clearance and can help it better withstand wind or snow.

Last but not least, building inspections. Like with all construction projects, a building inspector will have to approve the building upon completion, and you need to be prepared to be compliant.

Failing to do so might result in additional costs for unexpected changes to the building.

Make Use of an Experienced Estimator

With all of the above in mind, you might have a rough idea of how much building a warehouse will set you back.

But estimations and online guides will only get you so far – to properly plan for your own specifications and requirements; it is best to get in touch with a human estimator rather than online calculators.

They’ll be able to provide the best-value solutions while finding ways to minimize cost.

Specialists have an awareness of fluctuating prices of raw materials as well as permit costs and construction financing plans.

Once you are happy to have you a rough understanding of the process and potential costs, an experienced estimator will be able to give you a more accurate quote.

Ready to Build Your Warehouse?

Now we’ve taken a look at the cost to build a warehouse and some of the things you should consider in the process; we hope you feel better prepared to approach this new project for your company.

With the help of a good estimator and designer, your project will be underway in no time.

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