2025 Industrial Construction Cost Guide

Industrial Construction Costs—Most Expensive in the Americas

SMALL

MEDIUM

LARGE

Denver

$162

$112

$106

Calgary

$184

$103

$88

Seattle

$151

$110

$108

Las Vegas

$174

$102

$90

Reno

$172

$101

$89

Conversely, Latin America (LATAM) emerged as the most cost-effective region for small-scale projects, with an average price of $95 psf. The southeastern U.S. offered the lowest price for medium- and large-scale warehouse builds, averaging $74 and $67 psf, respectively. Both regions demonstrated considerable cost advantages across all project sizes: LATAM’s pricing was $44 psf, $9 psf, and $3 psf below the Americas average for small, medium and large projects, respectively. Similarly, the southeastern U.S. offered savings of $12 psf, $11 psf and $9 psf for the same project categories. Overall, the most cost-effective markets were Costa Rica, Monterrey, Greenville, Memphis and Guadalajara.

Industrial Construction Costs—Least Expensive in the Americas

SMALL

MEDIUM

LARGE

Costa Rica

$87

$68

$68

Monterrey

$86

$72

$70

Greenville

$118

$67

$56

Memphis

$114

$68

$63

Guadalajara

$97

$77

$73

Small warehouse construction experienced the sharpest cost reductions, with 24 markets reporting lower prices compared to a year ago. Leading this trend were cities like Seattle, Miami, Atlanta, Charlotte and Cleveland, each posting YOY declines of at least $24 psf. These contractions helped offset substantial price hikes from 2024, when this group of markets posted an average increase of 35%. Costs in Mexico City, Las Vegas, Phoenix, and Central Valley, California, rose by at least $20 psf. For medium-sized projects, price movement was relatively modest, with costs softening 1.0% or $1.21 psf YOY. Notably, Costa Rica recorded a substantial drop of $21 psf, while Seattle and Central Valley, California, saw increases of roughly $12 psf and $10 psf, respectively. Large warehouse development was the only segment to see average costs rise in 2025, increasing by $1.48 psf. This growth was primarily driven by sharp escalations in Seattle (+$24.59 psf), Mexico City (+$15.04 psf) and Indianapolis (+$11.47 psf). Meanwhile, costs in Cleveland and Greenville, fell by more than $10 psf compared to last year. Across all project sizes, Mexico City recorded the steepest average increase at $12.54 psf, while Miami posted the most drastic decline, with prices falling $16.65 psf.

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Cushman & Wakefield