How Much Will Your Warehouse Cost? A Guide To Size, Design, And Cost Factors

At some point, every business needs a warehouse, small or large, to store goods for commercial purposes. These metal warehouses can vary in size, design, and layout depending on the business’s needs. Are you, too, thinking of investing in a new warehouse but not sure how much it will cost?

Most businesses use it to store raw materials and finished goods or keep products in transit. It can be owned by the companies themselves or by a third-party logistics provider when it comes to buying a warehouse – size matters! The larger the warehouse is, the more it will cost. Then comes the design part. Would you like the boxy, simple design with accessories and a mezzanine floor?

Navigating The Blueprint Of A Metal Warehouse From Size To Cost

Factors Affecting Warehouse Size

• Inventory: For a large influx of goods and finished products, you will need a large warehouse to accommodate, including loading and unloading space.

• Equipment: You will need a large unobstructed space with a wide central aisle space for pallet racks, shelving, cantilever racks, goods handling equipment like forklifts, pallet jacks, order pickers, conveyor belts, dock board, loading ramps, etc.
  
• Layout: With a sturdy steel building, you can choose clear span designs. The reason why clear span buildings are fantastic for large-scale projects is the fact that they can span up to 300 ft. width without internal supporting columns.

Size Vs. Cost Trade-Offs: Efficiency Vs. Budget Constraints

You can further customize these as per requirement and add necessary accessories to enhance safety and functionality. We also offer budget-friendly insulation like single & double bubble and woven R17 for superior thermal efficiency to create an energy-efficient interior for your warehouse.

For a startup, a small warehouse space of a 30 x 40 metal building is a suitable option, and it can also be used as a storage unit for residential property. An established business can choose a 72 x 92 metal building with a lean-to for commercial storage.

Design Consideration For Warehouse

Racking Systems: An efficient racking system allows you to store bulky goods and organize small items & boxes easily. You can invest in bins and drawers to store small parts, tools, and other misc. items. For high-priced items, you can install lockers. Adding a mezzanine is another great way to extend storage space vertically.

Cost: Vary with needs & size.

Lighting: Consider high bay lights [installed over 20 ft.], low bay lights [installed under 20 ft.], fluorescent tube lights, and emergency lights. You can add LED lighting for long-lasting efficiency and consistent lighting, which consumes less power.

Cost: LEDs can save energy costs up to 40%.

HAVC: You can install rooftop units [RTUs], chilled water systems, heat pumps, variable refrigerant flow [VRF], and central air conditioning for larger steel warehouses for workers’ comfort.

Cost: $2,000 to $15,000+, depending on size.

Office Space: Every business needs space for administrative and management tasks, which include managing inventory, planning, customer service records, on-site sales & marketing team, and quality control.

Factors Affecting Cost Of Warehouse

Construction Materials

A standard prefab steel building will keep the cost low, but it also comes with limited customization options. You can choose 100% galvanized steel for frames and panels for a robust & rust-free structure.

Note: The design complexity also contributes to the final cost.

Labor Costs

PEMBs are mass-produced in factories, which helps to keep costs low. Since most work is done off-site, assembly takes less time and labor. In general, a simple metal commercial building will take about half the time of a traditional construction.

Note: The cost of land & labor in rural areas is generally higher than in urban areas but may have higher transportation costs.

Permits

The cost of a warehouse building permit in the US can vary from $300 to $2,000 depending on the location, purpose of the building, and size. Overall, a permit will cost about 0.5% to 2% of the total construction cost.

Utilities

As discussed above, the cost of adding plumbing, electrical lines, and HVAC systems will depend on size, location, and proximity to existing utility lines.

 Soft Costs

Here are some of the costs that you must note when deciding on a budget for your steel commercial warehouse.

• Permit and licenses
• Legal fees
• Insurance premium
• Architectural & engineering fee
• Design cost
• Taxes
• Movable equipment & storage
• Project management fees

Aftermath: Operational Cost

Operating a warehouse includes many ongoing costs that can have an impact on your profitability and revenue generation. Here are some common operational costs that you must consider:

• Staff & employee wages
• Rent or mortgage
• Utility bills
• Inventory management, including software systems, managing stocks, and accurate inventory tracking.
• Maintenance of the warehouse. One of the benefits of commercial metal buildings is that they have minimum upkeep needs. So, you can schedule cleaning once or twice a year.
• Insurance coverage for general liability, property, and worker’s compensation.
• Security, including surveillance systems [manual & automated]  
• Technology such as WMS, automation equipment, and others
• Transportation & logistics like expenses related to goods, fuel, vehicle maintenance, and third-party logistics.

Cost-Saving Measures In Warehouse Design & Construction

What size warehouse does your business need? If you are starting a new business, getting a 5000 to 10,000 sq. ft. metal commercial building is ideal. For larger firms, the area can be as big as 180,000 sq. ft. 

Using vertical space: Consider using vertical space for storage to make the most out of available space. You can add false [mezzanine] flooring to create extra space.

Adding energy-saving features: Choose LEDs over traditional lighting as they consume less power, generate no heat, and last longer.

Choosing prefab metal building: A prefabricated commercial metal warehouse is ideal for business as it takes less time to ship and assemble and is ready to use earlier. You can customize it as well. 

You can always negotiate a good deal: Compare quotes and pricing from various dealers to check which one fits your budget and needs. Don’t forget to check shipping, installation, and warranty. Be aware of any hidden charges that you may have to incur.

Build Your Custom Warehouse With Us

When deciding on a budget for your warehouse, don’t forget about all those crucial cost factors like labor, permits, taxes, and other soft costs. Trying to crunch all those numbers together can be a pain!
But with careful planning and budgeting, you can have your dream warehouse installed and running in no time. We know quality ain’t cheap, but worth every cent; that’s why we offer excellent quality steel frames and panels that will last long. Call (704)-741-1587 today for a free quote on your dream metal warehouse!