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Bigger warehouses cost more,
but cost less per square foot

Rules of thumbBusiness is great. Revenues are growing. And space is getting tight. As the demand for space goes up, many small business owners begin to think about building places of their own.

One common choice for small business owners is the tilt-up industrial building -- commonly called a warehouse -- consisting of a large open space enclosed by concrete panels with an asphalt roof. They're common in repair shops, distribution centers and, of course, warehouses.

If you've been thinking about taking the plunge and building your own facility, you'll want to swim through this sampling of construction costs put together by Oltman's Construction Company.

In general, a bigger building will cost more than a small one, but you can expect your building costs per square foot to decrease as your square footage increases. Oltman's estimates a typical 20,000-square-foot warehouse will cost you about $35 a square foot. Building costs for 400,000 square feet of warehouse drop down to about $19 a square foot.

A 40,000-square-foot warehouse that includes 2,000 square feet of offices will run about $1.18 million, according to the California-based construction firm.

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Grading costs and local assessment fees could add as much as $5 a square foot more to your costs.

How much can you expect to pay for your building?

Warehouse building costs


Rules of Thumb is a regular feature of the SmallBiz Finance channel of Bankrate.com. Each week, it takes a look at a different statistical aspect of small business.

-- Posted: Jan. 11, 2000

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