Global warehouse/logistic center construction costs by key city 2020

In 2020, the average cost to build a warehouse or logistics center varied significantly by country. In New York, United States the costs were on average 117 U.S. dollars per square foot. However, the costs in Rio de Janeiro, Brazil were significantly lower at 75 U.S. dollars per square foot. The costs to build a warehouse or logistics center depend on several factors, such as, location, materials, and unionization of the labor force.

Logistics and Warehouse Construction

Despite the various considerations for warehouse/logistics construction, the demand for warehouses is apparent. Since 2016, the percentage of U.S. warehouse space that is available has generally been on the decline. To meet the decline in available space, there has been a push to build more warehouses, especially in the U.S. Between 2007 and 2018, the U.S. saw a rise in warehouse construction that resulted in over 3,500 additional warehouses being built to meet the demand. In other countries the value derived from warehouses is also clear. In the UK, the value of new industrial warehouse construction outputs has been dramatically increasing since 2013.

Logistics Construction in the U.S.

In the U.S., a vast majority of new warehouse/logistics constructions are dedicated to building large warehouses. The share of large warehouse construction projects as a percentage of all new warehouse construction has increased in recent years. The market and competition among construction companies can be quite competitive. As of 2017, Inland Empire, in Southern California, had the largest amount of warehouse space under construction, followed by companies located in Dallas and Fort Worth Texas.