Warehouse Costs by City: 50+ US Metro Areas (2026 Data)
Industrial lease rates vary by 3–4x across US metro areas. This guide compiles 2026 warehouse costs for 50+ cities — including lease rates, labor costs, property taxes, and total occupancy cost — so you can compare markets side by side.
Key Takeaways
- National average industrial lease rate: $8.25/sq ft NNN annually in Q1 2026
- Cheapest major markets: Memphis, Indianapolis, Kansas City ($4.25–$5.25/sq ft)
- Most expensive markets: Northern NJ, San Francisco, Los Angeles ($13.00–$18.00/sq ft)
- Total occupancy cost (lease + NNN + insurance) adds 30–55% on top of base rent
Northeast
The Northeast corridor from Boston to Washington DC offers proximity to the densest consumer population in the US but comes with the highest warehouse costs. Northern New Jersey is the primary distribution hub for the region, serving the massive NYC metro market.
| Metro Area | Lease Rate (NNN/SF/Yr) | NNN Charges | Avg Warehouse Wage | Total Occupancy |
|---|---|---|---|---|
| Northern NJ (Exit 8A) | $13.50–$17.00 | $4.50–$6.00 | $20–$24/hr | $18.00–$23.00 |
| Central NJ | $11.00–$14.50 | $4.00–$5.50 | $19–$23/hr | $15.00–$20.00 |
| Lehigh Valley, PA | $8.50–$11.00 | $2.75–$3.75 | $18–$21/hr | $11.25–$14.75 |
| Boston, MA | $11.50–$14.00 | $3.50–$4.50 | $20–$24/hr | $15.00–$18.50 |
| Hartford, CT | $8.00–$10.50 | $3.00–$4.00 | $18–$21/hr | $11.00–$14.50 |
| Baltimore, MD | $7.75–$10.00 | $2.50–$3.50 | $17–$20/hr | $10.25–$13.50 |
| Philadelphia, PA | $8.25–$10.75 | $3.00–$4.00 | $18–$21/hr | $11.25–$14.75 |
Southeast
The Southeast has emerged as a major logistics corridor thanks to the Port of Savannah, lower labor costs, and favorable business climates. Atlanta is the region's dominant distribution hub.
| Metro Area | Lease Rate (NNN/SF/Yr) | NNN Charges | Avg Warehouse Wage | Total Occupancy |
|---|---|---|---|---|
| Atlanta, GA | $6.50–$8.75 | $2.25–$3.25 | $17–$20/hr | $8.75–$12.00 |
| Savannah, GA | $5.75–$7.50 | $1.75–$2.50 | $16–$18/hr | $7.50–$10.00 |
| Charlotte, NC | $6.25–$8.50 | $2.00–$3.00 | $17–$19/hr | $8.25–$11.50 |
| Raleigh-Durham, NC | $6.75–$9.00 | $2.00–$3.00 | $17–$20/hr | $8.75–$12.00 |
| Nashville, TN | $6.00–$8.25 | $1.75–$2.75 | $17–$19/hr | $7.75–$11.00 |
| Jacksonville, FL | $6.50–$8.50 | $2.00–$3.00 | $16–$19/hr | $8.50–$11.50 |
| Miami, FL | $10.50–$13.50 | $3.50–$4.50 | $17–$20/hr | $14.00–$18.00 |
| Tampa, FL | $7.50–$9.75 | $2.50–$3.50 | $16–$19/hr | $10.00–$13.25 |
Midwest
The Midwest offers the lowest warehouse costs in the country combined with central geographic positioning. Markets like Indianapolis and Columbus are popular for national distribution because they can reach 60–70% of the US population within two-day ground shipping.
| Metro Area | Lease Rate (NNN/SF/Yr) | NNN Charges | Avg Warehouse Wage | Total Occupancy |
|---|---|---|---|---|
| Chicago, IL | $7.00–$9.50 | $3.00–$4.50 | $18–$21/hr | $10.00–$14.00 |
| Indianapolis, IN | $4.50–$6.25 | $1.50–$2.50 | $16–$18/hr | $6.00–$8.75 |
| Columbus, OH | $4.75–$6.50 | $1.50–$2.50 | $16–$19/hr | $6.25–$9.00 |
| Kansas City, MO | $4.25–$5.75 | $1.25–$2.25 | $16–$18/hr | $5.50–$8.00 |
| Cincinnati, OH | $4.75–$6.50 | $1.50–$2.25 | $16–$18/hr | $6.25–$8.75 |
| Detroit, MI | $5.50–$7.25 | $2.00–$3.00 | $17–$20/hr | $7.50–$10.25 |
| Minneapolis, MN | $6.00–$8.00 | $2.25–$3.25 | $18–$20/hr | $8.25–$11.25 |
| St. Louis, MO | $4.50–$6.00 | $1.50–$2.25 | $16–$18/hr | $6.00–$8.25 |
South Central / Texas
Texas markets — particularly Dallas-Fort Worth — have become major logistics hubs, combining moderate costs with strong infrastructure and population growth. Houston is critical for petrochemical and import distribution.
| Metro Area | Lease Rate (NNN/SF/Yr) | NNN Charges | Avg Warehouse Wage | Total Occupancy |
|---|---|---|---|---|
| Dallas-Fort Worth, TX | $5.75–$8.00 | $2.00–$3.00 | $17–$19/hr | $7.75–$11.00 |
| Houston, TX | $5.50–$7.75 | $1.75–$2.75 | $16–$19/hr | $7.25–$10.50 |
| San Antonio, TX | $5.25–$7.00 | $1.50–$2.50 | $15–$18/hr | $6.75–$9.50 |
| Austin, TX | $7.00–$9.50 | $2.25–$3.25 | $17–$20/hr | $9.25–$12.75 |
| Memphis, TN | $4.00–$5.50 | $1.25–$2.00 | $15–$17/hr | $5.25–$7.50 |
| El Paso, TX | $5.00–$6.75 | $1.50–$2.25 | $14–$17/hr | $6.50–$9.00 |
West
Western markets are dominated by Southern California's Inland Empire — the nation's largest industrial market by square footage. Secondary markets like Reno and Phoenix have grown rapidly as alternatives to expensive California locations.
| Metro Area | Lease Rate (NNN/SF/Yr) | NNN Charges | Avg Warehouse Wage | Total Occupancy |
|---|---|---|---|---|
| Inland Empire, CA | $10.50–$14.00 | $2.50–$3.50 | $18–$22/hr | $13.00–$17.50 |
| Los Angeles Basin, CA | $13.00–$18.00 | $3.00–$4.00 | $19–$23/hr | $16.00–$22.00 |
| San Francisco Bay Area, CA | $14.00–$19.00 | $3.00–$4.00 | $20–$25/hr | $17.00–$23.00 |
| Phoenix, AZ | $7.00–$9.50 | $1.75–$2.75 | $17–$19/hr | $8.75–$12.25 |
| Reno / Sparks, NV | $7.50–$10.00 | $1.50–$2.50 | $17–$20/hr | $9.00–$12.50 |
| Las Vegas, NV | $7.75–$10.25 | $1.50–$2.50 | $16–$19/hr | $9.25–$12.75 |
| Seattle / Tacoma, WA | $9.50–$13.00 | $2.50–$3.50 | $19–$23/hr | $12.00–$16.50 |
| Portland, OR | $8.00–$10.50 | $2.00–$3.00 | $18–$21/hr | $10.00–$13.50 |
| Denver, CO | $8.25–$11.00 | $2.25–$3.25 | $18–$21/hr | $10.50–$14.25 |
| Salt Lake City, UT | $6.75–$9.00 | $1.75–$2.75 | $17–$19/hr | $8.50–$11.75 |
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