2025 Industrial Construction Cost Guide

Despite recent macroeconomic volatility, construction costs for new warehouses remained stable year-over-year (YOY) as of March 2025. Construction activity in the industrial sector had already slowed from the 2021-2023 highs before recent trade disruptions, and the pipeline is likely to slow further as companies adapt to ongoing uncertainty. A slower global construction pipeline has softened competition for materials and services, keeping price increases subdued. However, global trade uncertainty has begun to affect pricing as suppliers prepare to operate in a higher-cost environment. Cushman & Wakefield’s Industrial Cost Guide offers insights into construction costs across 46 markets in the Americas. It focuses on ground-up build to-suit projects for modern distribution centers in three sizes, based on rentable square feet (rsf): small (109,200 rsf), medium (476,400 rsf) and large (901,000 rsf). This guide includes comprehensive construction costs, including all relevant trade codes, general conditions, fees and contingency, targeting core and shell construction for a variety of industrial uses. The final use of the facility (e.g., cold storage, last mile or fulfillment) requires additional costs around racking, mechanical, electrical and plumbing (MEP), and conveying systems. The guide excludes costs for furniture, fixtures and equipment (FF&E), IT, audio/visual, and security for office components, as well as soft costs or purchase of land for the overall industrial project.

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