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 |
| Charleston, SC | $7.25–$9.75 | $2.25–$3.25 | $17–$20/hr | $9.50–$13.00 |
Market spotlight: Charleston, SC
Charleston is the Southeast's second port market after Savannah — and in 2026 it is one of the most tenant-favorable in the country. A wave of big-box speculative deliveries has kept industrial vacancy elevated, so tenants under ~350,000 sq ft have real negotiating leverage even as asking rents grew roughly 5% year-over-year. Import-driven occupiers pay for proximity: space minutes from the Port of Charleston terminals commands the top of the range, while outlying submarkets (Summerville, Ridgeville) price closer to Savannah levels. If your freight moves through the port, weigh leased space against port-adjacent 3PL and bonded warehousing before committing — for pallet-rate, devanning, transloading, and drayage costs specific to this market, see our Charleston warehousing cost hub. (Disclosure: the publisher of this site operates C&C Warehouse, a bonded facility near the Port of Charleston.)
Charleston, SC · CBP-Bonded & General Order
Comparing warehouse costs near the Port of Charleston?
Before you sign a lease, price the alternative: C&C Warehouse is a CBP-bonded & General Order facility minutes from the port — pallet storage without the lease commitment, plus container devanning, transload/cross-dock, overweight reworking, and drayage coordination. Tell us about your cargo and get a direct answer from the operator.
C&C Warehouse is operated by the publisher of WarehousingCosts.com. candcwarehouse.com
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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