Warehouse Cost: Startup & Ongoing Costs

A warehouse can cost very different amounts depending on whether you lease space, rent shared storage from a third-party logistics (3PL) provider, or build your own. Building takes capital, land, and time, so leasing or using a 3PL is the more common route for smaller businesses.

The lease range above comes from TenantBase and was checked on Oct 13, 2026. Industrial rents are quoted for each square foot over a year, and every lease figure in the first tables below follows that convention. Shared storage is billed monthly instead, which the 3PL tables show.

Rates differ by market, building quality, and size. National averages sit in the middle, with coastal port markets above them and the South and Midwest below.

Asking rent is what landlords list, and in-place rent is what tenants on active leases pay. The in-place figure runs lower. Smaller spaces often cost more per foot than large ones because landlords price small suites at a premium.

Most industrial leases are triple net, so you pay a share of building costs on top of base rent.

Taxes, insurance, and maintenance can add a noticeable amount to the base rate. When you compare listings, ask for the total cost per year, not just the quoted rent.

If you plan to build, costs depend on size, finish, and use. Larger buildings cost less per square foot because fixed costs spread over more space.

Shell-only costs cover the building structure, while turnkey figures include finishes and systems such as lighting, power, and utilities. Cold storage costs much more because of insulation, refrigeration, and reinforced floors. Land, permits, and site work are often excluded from these figures, so ask contractors what their quote includes.

A 3PL provider stores and ships your goods in a shared facility, which avoids a long lease. Pricing is usually monthly.

Some providers price by the pallet instead of by floor space.

Fees for receiving, picking, packing, and shipping are charged separately in many contracts, so request the full rate sheet.

Leasing gives you your own space and control over layout and hours, but you carry the rent, utilities, and staffing. A 3PL spreads those costs across several clients and lets you scale storage up or down, though you pay handling fees and share a facility. Building makes sense mainly for companies with long-term, high-volume needs and the capital to fund construction.

Match the choice to how stable your inventory is. A business with seasonal swings may prefer flexible 3PL space, while one with steady volume and special equipment needs may lean toward a lease.

• Market. Port cities and major hubs cost the most.
• Building size. Small spaces often cost more per square foot.
• Lease type. NNN leases add taxes, insurance, and upkeep.
• Clear height and docks. Features that support racking and trucks raise rent.
• Climate control. Refrigerated space costs far more than dry storage.
• Term. Short leases and flexible space may carry a premium.

Industrial rent data comes from several measures.

Averages combine all building types in a market, from older small-bay space to modern distribution centers. A national average can also mask the gap between expensive coastal markets and cheaper inland ones. Check the date on any figure too, since rents move over time.

• Is the quoted rent NNN or gross?
• What do taxes, insurance, and maintenance add?
• What is the annual increase?
• How does the dock and clear height fit my racking and trucks?
• Does the 3PL quote include handling and shipping fees?

A commercial real estate attorney can review a lease. A licensed accountant can help you compare leasing, a 3PL, and building.