2025 Industrial Construction Cost Guide

Most Expensive and Cost-EffectiveMarkets

Canada ranked as the most expensive region for small warehouse development, while the Western U.S. led in costs among medium and large construction projects. The leading region commanded a premium of $36 psf, $14 psf, and $13 psf for small, medium and large projects, respectively, compared to the Americas average. Based on the square footage requirement in each plan, this translates to additional costs of roughly $4 million, $7 million and $12 million. Unsurprisingly, the five most costly markets were in Canada or the Western U.S. Affordability of each market varied by project size, but on average, Denver, Calgary, Seattle, Las Vegas and Reno ranked as the priciest markets overall.

Distribution Center Costs Small, medium and large projects by market

$200 $180 $160 $140 $120 $100

$80 $60 $40 $20 $- Cost PSF

Reno

Miami

Dallas

Detroit

Seattle

Denver

Atlanta

Calgary

Toronto

Phoenix

St. Louis

Chicago

Oakland

Houston

Portland

Montreal

Nashville

Memphis

Louisville

Charlotte

Baltimore

Cleveland

Indianapolis Cincinnati

Greenville Greensboro

Las Vegas

SanDiego

Columbus

Monterrey

Milwaukee

Pittsburgh

Costa Rica

Vancouver

NewJersey

MexicoCity

Kansas City

Minneapolis

Guadalajara

Los Angeles

Philadelphia

Salt Lake City

InlandEmpire

PennCorridor

Central Valley, CA

Orange County, CA

Small (109,200RSF)

Medium(476,400RSF)

Large (901,000RSF)

Source: Cushman & Wakefield Project & Development Services

2025 Industrial Construction Cost Guide 17