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What Does it Cost to Build an Industrial Warehouse?

The rise of e-commerce has helped the industrial warehouse asset class become one of the most resilient commercial real estate sectors over the last several years.

According to the 2022 U.S. Real Estate Market Outlook, a record-setting 448.9 million square feet of industrial space is currently under construction. However, even with the massive amount of new product coming to market, demand is still projected to exceed supply.

This article covers the cost of building an industrial warehouse and lists some of the best industrial markets for commercial buildings and real estate investment.

Factors Affecting Industrial Warehouse Costs

Industrial warehouse construction costs will vary based on the type of warehouse in question. For example, a basic storage warehouse with a small flex office space will cost significantly less to build than the multi-level warehouse with robotic systems found in Amazon’s buildings:

Industrial warehouse types

Basic storage

Refrigerated with humidity control

Traditional bulk storage with forklifts

Automated workflow with robotic and conveyor systems

Materials & type of construction

Pre-engineered metal structures are less expensive and generally used for smaller warehouses