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Home -- Blogs -- How Much Does Commercial Storage Cost?

How Much Does Commercial Storage Cost?

Benjamin

Executive Manager: Plays a crucial role in strategic decisions and business growth.

Updated: May 24, 2024
Published: March 22, 2024

Quick Answer: Basic ambient temperature warehouses in suburban areas cost between $4 to $9 per square foot annually, while urban areas may see $8 to $12 per square foot annually. Retail storage spaces can range from $150 to $250+ monthly for small units to $20 to $28 per square foot annually for larger spaces. Specialized storage for items like pharmaceuticals or electronics can start from $12 per square foot annually, with total costs significantly influenced by market conditions and additional facility requirements.

Cost Of Commercial Storage Shelter Structures Guide

What is Commercial Storage?

Commercial storage encompasses facilities that provide enclosed space for inventory, assets, data records, and more during business operations. Warehouse buildings accommodate manufacturing materials, retail overstock, and bulky equipment, for example. Climate-controlled Vaults store delicate electronics under strict conditions. Records centers meet regulatory compliance for sensitive files. Modular on-site containers also supplement company space needs quickly when required. The extensive options suit nearly any item a firm could need to keep securely.

Types of Commercial Storage

Numerous specialized commercial storage facility categories exist tailored to securely handle diverse business assets:
  • Warehouse Storage - Large standalone buildings featuring customizable layouts accommodate palletized goods, light assembly work zones, and loading docks supporting frequent merchandise throughput for distribution businesses. Forklifts and inventory automation help manage high-density volumes efficiently.
  • Retail Storage - Retailers often lease smaller adjoining premises or off-site storage units augmenting display floor capacities for stocking backup products, overstocks and accommodating seasonal variations conveniently all year. Centralizing overflow inventory also bolsters theft protection.
  • Office Storage - Businesses utilize secure localized or off-site facilities outfitted with specialized fixtures for filing cabinets, racks and adjustable shelving for storing expansive documents, oversized prints/plans, legal records, back up server tapes and additional media requiring fire-resistant protection and gated access protocols.
  • Climate-Controlled Storage - Specialized real estate equipped with calibrated HVAC systems and humidity modulation capabilities stabilizes interior environments for temperature and moisture sensitive goods. This category covers electronics, furniture, fine art and museum artifacts requiring tightly controlled conditions.
  • Cold Storage - Insulated, refrigerated facilities maintain constant cooler and freezer conditions tailored to preserving perishable items like food ingredients for bakeries, fresh produce, vases, flowers, or select industrial materials demanding sub-zero warehousing.
  • On-Demand Storage - Relocatable storage containers, available in standardized sizes, offer secure, intermittent supplemental capacity for equipment parts, excess raw materials, documents, and more when conveniently positioned on business premises as needed. Flexible utilizations prove cost-efficient.
Specialty solutions around pharmaceuticals, blood plasma, wine storage, and more exist in addition to these common property types for handling unique, specialized inventory as well. Storage balancing security, longevity, and retrieval efficiencies carefully match extensive business application requirements.
Types Of Commercial Storage

Factors That Can Affect Commercial Storage Cost

Numerous interdependent aspects influence storage expense ranges significantly across facility types and real estate markets. Carefully assessing the variables below assists businesses in finding optimal solutions aligning critical capabilities against budget realities:

  • Location
  • Expect sizable regional rate differences between rural, suburban and dense urban centers based on property acquisition costs and local occupancy demand dynamics. Storage rents track local industrial and retail lease rates closely. Assess zoning restrictions and construction labor pools impacting market supply conditions as well.
  • Unit Size
  • Storage charges apply on a per square foot and cubic foot basis, typically reflecting available area and vertical height dimensions. Larger spaces do tend to bear slightly better cost values generally through modest bulk discounts. However, overbuilding space sans firm inventory growth forecasts risks unnecessary expenses for empty capacity. Model current and 2-3 year projections first.
  • Facility Environmental Attributes
  • Simple ambient temperature warehouse spaces lease extremely affordably from $3-8 per square foot annually compared to more complex refrigerated and climate stabilized buildings ranging from $10-25 per foot for precisely controlled humidity/temperatures. Unique inventory items like aerospace parts, electronics and artwork guide choices based on susceptibility to damage without narrowly maintained environments 24/7.
  • Contract Duration
  • Long-term 5+ year warehouse or retail store room property leases allow landlords to offer 15-20% discounts on effective monthly rental rates and pass along fit-out investments via landlords. This rewards tenant stability commitments. However, short-term flexible 3-6 month arrangements are suitable for changing distribution routes or seasonal retail stock variability despite paying slight premiums.
  • Special Functionalities
  • Standard buildings featuring just dock access and flexible open floorplans lease affordably. Introducing more specialized managed retrieval systems, height adjustable shelving racks, wireless inventory barcode scanning, extensive fire suppression systems, contamination detectors, and multi-level security protections prove costlier. Balance nuanced business inventory control, accountability, and risk avoidance needs with expenses based on asset values.
  • Insurance
  • Providing all-perils coverage from fire and flooding to theft requires insurance underwriters to thoroughly review stored inventory asset types, quantities, and densities, assessing susceptibility risks to recommend prudent policy terms, limits, and premiums. Esoteric items require specialty appraisers, sometimes further affecting annual costs beyond base rental outlays.

Carefully reviewing all these interdependent influencing variables through current commercial real estate lenses assists organizations finding tailored storage solutions aligning with both immediate and future reliability, compliance and financial performance objectives.

Factors That Can Affect Commercial Storage Cost

How Much Does Commercial Storage Cost?

Basic Ambient Temperature Warehouses

  • Suburban Locations: Average $6-7 per square foot annually for 5,000-15,000 SF spaces, ranging $4 to $9 for smaller and larger options based on local market dynamics.
  • Major Urban Areas: Average $8-12 per square foot annually for spaces under 10,000 SF. New building construction costs drive prices higher in core metro locations with high occupancy.

Retail Storage Spaces

  • Urban Store Storage Rooms: Rear premises excess stockrooms of 500 SF run $20 to $28 per SF annually, around $2000 - $3000 monthly, including property taxes, insurance, and utilities.
  • Standalone Storage Units: Individual 10' x 10' drive-up storage units for off-season goods average $150 to $250+ monthly in major metros depending on security measures, location, truck accessibility and luxury tax rates. Minimum administration fees often apply also.

Specialized Storage Types

  • Controlled Environment Spaces: Stabilized pharmaceutical/electronics storage leasing rates start from $12 per SF annually, averaging $4000+ monthly for 1000 SF spaces in secondary markets, ranging up to $7000+ in San Francisco, NYC, and other prime locations. Art storage, plasma facilities, and food cold storage costs trend even higher.
  • Document Management Units: Secure paper record storage, including indexed access and retrieval systems, proves affordable, averaging around $0.50 per document box per month for legal and healthcare companies as baseline rates before additive fees.

Carefully accounting total all-in project costs covering construction, design allowances, ground leases, racks/fit-outs, power, property taxes and insurance gives the truest comparative cost analysis between options when evaluating commercial storage decisions.

Specialized Storage Types

Companies face constant pressures securing commercial real estate, satisfying changing operational supply chains, distributions, privacy regulation, and asset protection duties cost-effectively. Determining exact storage functionality needs from warehouse-scale to files first enables tailored facility choices, balancing expenses. Local market conditions influence pricing considerably as well. However, factoring in all-inclusive rates and fees consistently gives firms better comparisons when assessing options when growth mandates quick supplementing capacities.

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Contact Us

Make On-Demand Space Solutions Easier, Faster

SHELTER has a great team of skilled architects ready to support your project or Event at any time.

When you’re ready to start your next business, get in touch with us now, and our architects will get back to you with a quote as soon as possible.

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      [email protected]

Phone Number

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No.1 Huanghe Section,Songshan Road, Chao Tian Industrial Zone,Shilou Town Panyu District,Guangzhou