Ultimate Guide to Warehouse Construction Cost in Australia

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  If you’re looking to build a warehouse, chances are you’re searching for some clear information about the costs involved. There are so many variable factors involved in building a warehouse. It can become overwhelming. And most warehouse builders won’t give you an idea of where to even begin with cost. But we understand that cost plays a major part in your decision making. A warehouse needs to meet your needs but also suit your budget. So below we’ve set out a guide that can help you decide which sort of warehouse is right for you and your wallet.

 

What to Consider Before Constructing a Warehouse? 

Before warehouse construction even begins, many factors will influence the cost.

Size and Shape of Warehouse – There’s more to warehouse pricing than the floor space. The height of a warehouse also plays a major part in its cost. This is because you need more complex engineering the higher that a building is. We need to ensure that a structure is strong at any height and this impacts the cost. Irregular shaped warehouses also have a higher price tag. This is because you can make a smaller, regular shaped warehouse from pre-cut materials.

 Custom built steel structures

 

Location of Warehouse – Location often plays a part in warehouse construction costs. This is particularly so in remote areas of the state. There are extra costs involved in travelling to the site and getting materials there. Also, there is often a lack of trades people in remote areas. So we need to bring in workers that can complete the job to our quality and safety standards. 

Council Restrictions – Certain council areas will also have their own requirements that you need to meet. This can lead to an increase in warehouse construction cost. As an example, Colorbond® is one of the more cost-effective building materials for a warehouse, and Zincalume® is even cheaper. But it’s not always permitted by councils. You can’t build warehouses that are under flight paths in this material because it’s too reflective.

Type of Warehouse – This is a factor that most people don’t take into account when considering the cost of warehouse construction. The intended purpose of the warehouse has a huge bearing on price because of the way it needs to be structured. For instance an industrial warehouse that you use for energy infrastructure needs to be strong enough not to be knocked down in a natural disaster like an earthquake. This means the engineering needs to be of a higher level and this costs more. Inclusions can also drive up the price. A warehouse might need sprinklers as a safety measure. So you would need to consider this in the cost.

Self Storage Warehouses

Objective of Building a Warehouse – How you intend to use the warehouse could also affect cost. You may wish to invest more in your own building. Or you may want a higher return on your investment so you want to use better materials, or include more features. This is a personal choice that may influence the cost of warehouse construction.

Site Conditions – Site conditions can also play a part in the price of building a warehouse. We had a large project where we needed to knock down an old warehouse and offices before we could put up a new structure. This in itself took extra time. But the site was also sandwiched between two operating chemical plants. This means we had to take extra precautions. This slowed the job down. Site conditions can even refer to something as simple as traffic. A high traffic site can delay work.

 

Different Types of Costs That Go Into Warehouse Construction

 

Apart from the points mentioned, there are other factors that can influence price:

 

  • Land cost is a big factor and there can be huge disparities between regional areas and major cities. This is something you need to take into account when considering warehouse construction. What sort of warehouse do you want to build on the land and what sort of return do you want on it? 
  • Council fees – Linked to land cost are things like council fees. Certain areas are going to be more expensive than others. Again, you need to take this into consideration when building a warehouse.
  • Labour will be priced differently in different locations. The remoteness or otherwise of an area can influence this factor.
  • Construction material Finally, one of the most important factors to consider is the construction material. A small warehouse built out of Colorbond® will be in a different price range to a factory or warehouse built from concrete. And even with concrete cladding, there is variation depending on the structure required.

The type of steel used in the construction of a warehouse is also an important cost factor. And it’s definitely something to look at if comparing warehouse builders. At Asset Building, we recommend  using structural steel for anything over 12 metres. For structures over 18 metres, we insist on it. So the material used in industrial and commercial buildings plays a significant role in determining cost.

 

Tips on Reducing Warehouse Construction Cost

The warehouse construction process isn’t as easy as it seems – unless you’re doing it every day like we are. The best way to reduce your warehouse construction cost is to talk to us. We can guide you through all your options. And we can even produce concept drawings of your proposed design and plan out the use of the facility. This will allow you to gain maximum use of space and functionality.

We also know the best contractors and tradespeople to use. This will save you many headaches.

We commit to helping you build a great warehouse within your budget. We use a process called budget fit. This means we can give you a budget estimate based on your needs from the start before we even visit the site. This figure may then need several adjustments as we talk through what you need and want for the project. But we find it helps to have a starting figure because it gives you a firm ballpark figure to work with.

The table below gives you a rough idea of warehouse construction cost per square metre. However, as outlined above, each project is subject to a number of factors that can impact the cost of warehouse construction.

 view inside warehouse shed with racking and forklifts

 

WAREHOUSE COST GUIDES*

Typical lower cost/m2

Typical upper cost/m2

Cost range for 1000m2 building

Warehouse building only

$250/m2

$400/m2

$250,000 – $400,000

Warehouse, floor, basic electrical, no amenities

$500/m2

$650/m2

$500,000 – $650,000

Turnkey warehouse complete design & construct

$900/m2

$1,100/m2

$900,000 – $1,100,000

    

*These prices are a guide only. They are base prices and do not take into account other factors like shape, height, site costs etc

 

Benefits of Building a Warehouse

Building a warehouse could be the best business decision you make. A warehouse is an affordable and functional workspace solution. It allows you to expand your business, keep supply chains running and protect your goods and machinery. A warehouse can also be very convenient. Most are located close to roads, rail or waterways allowing you to move goods easily. And an Asset Building warehouse will be structured exactly as you want so it suits your business perfectly.

 

Contact Us if You Are Looking into Building a Warehouse

We’d love to take the stress out of your warehouse build. Get in touch and we can chat about what you’re after.

 

 

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