Estimating the cost of building a warehouse is complicated. If it’s a large warehouse, the calculation gets more complex. Today I’ll break down how much does it cost to build a 100 000 sq ft warehouse.
The estimated cost of building a turnkey 100 000 sq ft warehouse is about $6,250,000. Note that this is an average estimation. The cost of the land plot and grading is not included in this amount.
Let’s see what this cost really means.
How Much Does It Cost To Build A 100 000 Sq Ft Warehouse?
The cost of building a warehouse is calculated by integrating the cost of each square foot. To disintegrate this calculation, you need to consider the cost of concrete, assembly, and building, as well as, the cost of the steel building kit.
Concrete, assembly, and building can cost you about $2,000,000. The cost of the steel building kit can be anywhere between $3.50 and $8 per square foot, which sums up to $350,000 and $800,000 respectively.
Warehouse Building Cost Of Different Sizes
I’ve created a chart for the estimated turnkey cost of building warehouses of different sizes. These costs may vary, depending on where you’re located and what you expect from the service provider. However, the rough estimation will help you get an idea to get started with your budget.
|2400 sq ft||40 ft x 60 ft||$150,000|
|3000 sq ft||50 ft x 60 ft||$187,500|
|4000 sq ft||50 ft x 80 ft||$250,000|
|5000 sq ft||50 ft x 100 ft||$312,500|
|6000 sq ft||60 ft x 100 ft||$375,000|
|6400 sq ft||80 ft x 80 ft||$400,000|
|8000 sq ft||80 ft x 100 ft||$500,000|
|10000 sq ft||100 ft x 100 ft||$625,000|
|15000 sq ft||100 ft x 150 ft||$937,500|
|20000 sq ft||100 ft x 200 ft||$1,250,000|
|30000 sq ft||100 ft x 300 ft||$1,875,000|
|40000 sq ft||100 ft x 400 ft||$2,500,000|
|50000 sq ft||100 ft x 500 ft||$3,125,000|
|100000 sq ft||100 ft x 1000 ft||$6,250,000|
Let’s break down the cost to make you understand the calculation better.
|Description||Cost Per Square Foot|
|Metal Building||From $3.50 to $15|
|Concrete, Building, and Assembly (Shell)||From $19 to $25|
|Turnkey||From $55 to $70|
Interesting Fact: Even though the cost for a larger warehouse will be higher compared to a smaller one, the cost per square foot is significantly lower for larger warehouses.
Related: How Much Does It Cost To Build A House In Minnesota?
Different Types Of Costs For Building A Warehouse
A lot of different things sum up the cost of building a warehouse. If you want to get a customized warehouse, you need to be aware of the expenses you will need to make. Let’s see what the primary sources of costs are.
Hard cost consists of almost all brick and mortar costs you can think of. For instance, labor, material, sewer, plumbing, electric, leveling, HVAC, grading, parking, etc., are all part of hard costs.
Most of the time, when people estimate the cost of building a warehouse, these are the things they calculate. However, there are other sources where expenses occur.
Most costs that are not included in the hard cost estimation can be declared as soft costs. For instance, if you’re getting temporary furniture for the sake of construction, it will be included in the soft cost.
Most common soft costs include legal permits and fees, insurance, tax for engineering, architectural drawing fees, movable tools, etc.
Long-term costs mostly refer to maintenance fees. For instance, any utility bills you’re paying will be a part of the long-term cost. Many people assume that they can save money on insulation.
However, this decision ends up costing them more in the long run. The better the insulation system, the lower the maintenance cost will be over the next years. So, it’s essential that you do the math and invest in insulation accordingly.
Financing costs are directly related to the bank. If you’ve taken a loan for the warehouse, the interest you need to pay is part of your financing cost. Your financing costs directly depend on the interest rate you get from the bank for your loan.
No matter what you’re building, there are always some additional costs. People change their minds halfway through the project and want some extra features to be added. This might not be a significant change in the course, but it’s better to be prepared for such costs.
For instance, making your warehouse automated will certainly increase the cost. The use of specialized software, shelving, security, forklift, racking, and equipment are just to name a few that add extra expense to the estimated amount of cost.
What Affects The Cost Of Building A Warehouse?
As I have mentioned before, the cost is only an estimation. There are numerous aspects that affect the price of constructing a warehouse. I’ve mentioned the most significant ones below.
Size Of Your Warehouse
A large warehouse will require less cost per square foot compared to a smaller one. Then again, larger warehouses will require extra installation and features to require more money.
Proper planning is the key here. If you create a perfect outline of your warehouse, get the architectural design right, and then get started. This can help you estimate the total cost compared to the size and budget of your plan more accurately.
Where you’re constructing your warehouse has a lot to do with determining the cost. This affects the cost in two ways. Firstly, grading your warehouse depends on the site. So, the condition of the site will affect how much it will cost you to complete the task.
Secondly, service providers may charge different rates depending on the area. That’s why it’s nearly impossible to pinpoint the cost of building a warehouse.
The last reason is the relevant regulation you have to go through. You will need to get permission, which may not be the same for all areas. Similarly, different banks will charge different rates, contributing to the financing cost for building a warehouse.
However, these variations are not significant enough to impact the total amount you’re investing to construct your warehouse.
The more complex you want your warehouse to be, the more expensive it will be to construct. If you’re going for the most simplified version of a warehouse, you can cut down on the cost by a lot.
For instance, some users will require cold storage in their warehouse. This applies to people who deal with perishable goods. Building cold storage will certainly add an extra cost to the expense.
Any specific requirement you’re choosing will amp up the price. Specific criteria like a refrigerated warehouse or humidity-controlled warehouse require different types of materials. This can increase the cost per square foot by a lot.
The same can be said for architectural design. The more complexity you’re going for, the higher you will have to pay. As low as average warehouses can cost, it’s better to signify the features you require and invest the necessary amount in the warehouse.
It goes without saying that the material you’re choosing will drastically affect the price of constructing a warehouse. If we’re talking about the most basic things, the concrete foundation will come first.
Unlike regular houses where you can use a uniform slab of concrete, warehouses require a special footing. It’s engineered with specific tolerance to stand against snow, wind, and other natural activities in that area.
The type of warehouse you’re building will determine how much you will have to pay for materials.
Types Of Warehouses With Their Costs
The cost I have explained so far does not include any special features. It’s an estimation of the average warehouse building cost. Let’s see what type of warehouses are usually made.
This is the most common type of warehouse. You can apply the calculations I have mentioned so far for this type of warehouse. They don’t require any extra features.
If you’re building an office warehouse, expect to pay anywhere between $100 and $200 per square foot. If you want to go for high-end features, calculate the cost by taking the highest number from the range.
Conversely, if you’re building an average office warehouse, you can stay on the lower end.
Cold Storage Warehouse
Due to the materials used for constructing cold storage warehouses, you may have to pay anywhere between $150 and $170 per square foot on average.
The estimated average cost for a data warehouse is from $170 to $300 per square foot. However, renowned companies spend a lot more on their data warehouses.
I hope I’ve covered everything you wanted to know about how much does it cost to build a 100 000 sq ft warehouse. Since it’s a huge investment to make, I recommend considering everything and having a foolproof plan ready at hand.
In any case, if things go wrong, you will be out of a large amount of money. So, do your research and think through it before building a warehouse.
My name is Rex Morriss. I have always liked well-arranged, comfy, cozy homes. This propelled me to ensure that people have the right information when purchasing homes and also that, while trying to get the interior done, the process is cost-effective but satisfying to the clients. The need for a comfy home can never be over.