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5 Factors to Consider When Building a Warehouse

5 Factors to Consider When Building a Warehouse

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Home Vendor News 5 Factors to Consider When Building a Warehouse

Warehouse construction has evolved over the years, and so have its uses. They are used for storage purposes and in the process of price stabilization, grading and packing, and others. Warehouses facilitate continuous production as raw materials are readily available whenever needed. They also provide safe custody for goods, especially if insured against fire, floods, theft, or damage. Below are factors to consider when building a warehouse.

1. The amount of space you need

The amount of space you need can be determined by what you intend to use the warehouse for. Is it for packing, storage, dispatch, leasing, or any other use? If you intend to use the warehouse for storage purposes, the features of the goods will also determine the amount of space you’ll need.  Don’t forget to consider the warehouse space standards in place. Installing a warehouse mezzanine will provide you additional space and also help clear the warehouse floor.

2. Location

Selecting the right location can make all the difference in your warehouses’ effectiveness, efficiency, and profitability. When choosing a location to build your warehouse, pay attention to the local demographics for workforce availability, labor skills, and costs. You should also consider accessibility to roads and highways and the traffic flow, especially if trucking is the main transport mode. When choosing a location for your warehouse, proximity to suppliers, producers, and customers helps lower transport costs, reduce lead times, and enhance responsiveness. Additionally, consider exposure to environmental disasters like earthquakes, hurricanes, or tornados.

3. Legal requirements

Before building a warehouse, familiarize yourself with the legal requirements put in place by the state or local authority. Find out if the locality you intend to set up your warehouse in allows for storing the goods you deal in, helping you avoid any future hassle.

4. Design layout

When building a warehouse, the workflow should be considered. You want to ensure a logical sequence of operations where each process is conveniently located to the one preceding it. You also want to ensure the warehouse design and layout provide easy access for the product you want to move.

5. Budget

Budget plays a key role in the building of a warehouse. Beware of the average building cost, which may be affected by the materials used, warehouse size, delivery costs, and construction methods. Some of the costs to consider when building a warehouse include soft costs, which are difficult to estimate as they aren’t directly involved in the construction but are necessary. They include taxes, insurance, permit, engineering, and architectural costs, and others. Hard costs are the foreseeable cumulative costs directly involved in the physical construction of the warehouse, and they are material, labor, site development, landscaping, and grading costs.
Additionally, there are financing costs that are most important for the success of the warehouse construction. They include a short-term construction loan, bridge financing, and permanent takeout financing. Lastly, there are long-term costs like utility bills and maintenance costs, and the concrete foundation costs.


Building a warehouse can be costly and overwhelming. Knowing the factors to consider when constructing eases the process by helping you develop a fool-proof plan.


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