How Much Does it Cost to Build Out Brand New Warehouse Space?

cost to build out new warehouse spaceWhen searching for warehouse space to rent you will find industrial space that has been previously built out and occupied before (aka 2nd generation space) and if available you will also find brand new warehouse space that is in shell condition (aka 1st generation space). When I say the warehouse is in shell condition it means that it has never been built out before or occupied by any tenant and looks like what you see in the photo here. There are no bathrooms, lights, office space, or anything.

Most companies that rent warehouse space typically need some office space built out so they can have a place for their employees to operate the business. You mostly see them needing somewhere between 1,000 to 5,000 sf of office however in some cases tenants will need more office space.

Total costs can depend on the size of the space, your specific special needs, the market you are in (e.g. warehouse space Austin Tx), and the level of improvements that you ask for, however in general the average cost per sf to build out basic warehouse space with a little bit of office is pretty much the same.

Cost to Build Out Warehouse Space Depends on Needs and Market

Let’s say you need to rent 47,000 sf of warehouse space in Austin, TX and you need about 3,000 sf of office space built out. The industrial property that you like has just been completed so it’s in cold dark shell condition which means there are no lights, no bathrooms, no power, etc. It looks just like what you see in the photo above.

warehouse rental space planTo build out 3,000 sf of office space similar to what you see in the photo of the floor plan would cost you roughly $7 to $9 per SF. However keep in mind that every ones needs are different. Below is a typical construction bid that you would see on a warehouse space built-out like this.

General Requirements

  • Project Management – $2,091
  • Supervision – $3,137
  • Permits & Fees – $1,045
  • Trash Dumpster – $600
  • Insurance – $1,969
  • General Cleanup – $750
  • Engineering – $7,000

Concrete & Steel

  • Dock Ramp – $8,660

Woodwork & Millwork

  • Cabinets – $4,272

Thermal & Moisture Protect

  • Roof penetrations and acoustical insulation – $3,000

Doors & Windows

  • Interior doors and hardware – $12,368


  • Drywall partitions – $53,413 
  • Tape, float, texture, paint – $6,000
  • Acoustics ceilings – $6,100
  • Sealed Concrete – $5,522
  • Rubber base – $830
  • FRP – $874


  • Restroom accessories – $2,340
  • Mini blinds – $2,314
  • Toilet partitions – $1,950
  • Fire extinguishers – $220
  • Edge of dock levelers – $23,904
  • Bay door entrance ramps – $10,030


  • HVAC work – $30,060

Plumbing & Fire Sprinkler

  • Plumbing work – $42,300
  • Fire sprinkler work – $8,950


  • Electrical and lighting work – $48,000

General contractor fees – $15,684

Contingency – $5,229

Architectural Test fit fees – $950

Architectural fess thru DD / Construction docs – $13,100

Architectural fees , permitting, bidding, & CA – $10,700

Other project consultants – $7,810

Landlord construction management fee – $12,329

Total Cost to Build-Out Warehouse Space from Shell Condition

  • Total costs – $372,615 
  • Cost per SF $7.85 per sf

The warehouse build-out above includes two concrete loading ramps as well as dock levelers so that adds about $40,000. Other than that the construction is pretty basic and typical of most warehouse space finish outs (bathrooms, lighting, etc). Most warehouse space build-outs will fall within $7 to $9 sf unless your business has special power requirements or other needs that could cause the price to go up. Overall it seems to cost less than the cost to finish out office space.

If you have any questions about finish out costs for industrial space or need to rent warehouse space in Austin, Tx feel free to give us a call at 512-861-0525.






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