Why warehouse prices vary so much, the costs that are easiest to miss, and how to get a price you can rely on before you commit.
"How much does it cost to build a warehouse?" is one of the first questions we're asked, and the honest answer is that it depends on more than floor area. Two warehouses of the same size can differ a great deal in price because of the site, the structure and what goes inside.
Rather than quote a price per square metre that wouldn't hold up on your site, this guide explains what actually drives the cost, so you can plan a realistic budget and compare quotes properly.
The building itself
- Size and shape. A simple rectangle is the most efficient shape to build. Every extra corner, step or change in roof line adds cost.
- Wall system. Concrete tilt panel and steel framing with metal cladding have very different costs, and the right choice depends on the size of the building, fire separation and durability.
- Height. Clear height under the roof is one of the biggest decisions for a warehouse. Taller buildings allow more racking but need a larger structure.
- Roof span. Wide, column-free spans cost more than spans broken up by internal columns. The racking layout should decide where columns go.
- Floor slab. A slab designed for forklifts, heavy racking or machinery needs to be thicker and more heavily reinforced than a basic slab.
- Doors. Large roller doors, particularly ones rated for cyclonic wind loads, are a significant item.
The site
- Soil conditions. A geotechnical report tells the engineer what the footings and slab need to be. Reactive or soft ground costs more to build on.
- Earthworks. Cut, fill, retaining and removing unsuitable material can change the price significantly, particularly on sloping sites.
- Flood levels. Where floor levels must sit above a flood level, extra fill or a raised slab may be needed.
- Stormwater. Big roofs and hardstands produce a lot of runoff, and the drainage system has to handle it.
- Access and location. Remote sites, tight access and long distances to suppliers all add cost.
What goes inside and around it
- Office space and amenities. An office, lunchroom and bathrooms cost far more per square metre than open warehouse space.
- Fire services. Depending on the building's size and use, the National Construction Code may require hydrants, hose reels, sprinklers or other fire safety measures.
- Electrical supply. Three-phase power, a supply upgrade or a new transformer can be a major cost if the site's existing supply isn't enough.
- Hardstand, driveways and parking. Heavy-duty concrete areas for trucks and forklifts are often a large part of the total price.
- Insulation, ventilation and lighting. These affect running costs as well as build costs.
The costs people most often miss
- infrastructure charges levied by council
- electrical supply upgrades
- fire services required by the building's size and use
- earthworks and retaining on a site that isn't flat
- design, engineering, certification and approval fees
- the hardstand and external works around the building
How to get a price you can rely on
- Write a clear brief. How big is the building, what will it be used for, how high does it need to be, how many doors, how much office?
- Get site information early. A survey and a geotechnical report remove the biggest unknowns.
- Involve the builder early. On a design and construct project, the design is shaped around your budget from the start.
- Compare like with like. Check what each quote includes and excludes. Look closely at provisional sums and prime cost items, which are allowances that can change.
- Keep a contingency for genuine unknowns, particularly on sites that haven't been built on before.
How we price warehouses
We handle the design, the civil works and the build with our own team, plant and equipment, which means fewer hand-offs and fewer gaps between separate contracts. We'll tell you early where the money is going and where there's room to save.
If you'd like a realistic budget for your warehouse, get in touch. Tell us about the site and what you need, and we'll give you a clear picture.
