Demetree Real Estate Blog

What are the Costs of Maintaining Your Industrial Warehouse?

[fa icon="calendar"] 02.16.2017 / by Keni Flowers


As an industrial property owner, it is crucial that you understand the costs of keeping your building maintained. Understanding your operating expenses will not only help you set a monthly budget, it will help you prepare for future costs that can arise.

Here are some of the most prominent costs of maintaining your industrial complex to help establish a monthly budget:


A lot of the time, warehouse owners will have to make improvements to their property in order for it be appealing and even functional to tenants. While there is some wiggle room in the lease - meaning the tenant pays some and you pay some - property owners need to be prepared to perform alterations and renovations.

The nature and extent of the improvements will vary depending on your tenant’s needs, so estimating the costs can be difficult. The lease should be clear on what improvements will be made and who will be responsible for what. It should also clearly define whether or not the tenant will need to restore the space to it’s original condition.

Maintaining the Roads

For owners of industrial parks, keeping the roads in good condition is a must. You’ll need to keep the roads drivable, so repairing potholes and clearing debris from the road is a necessary cost you’ll have to factor in. Luckily, this is not a huge expense.

Property Taxes

Paying for property taxes is one of the biggest costs associated with owning an industrial warehouse. In some cases, this expense can be shared with the tenant depending on how the lease is structured. Property owners will almost always be responsible for at least a portion of these costs, though.

Property Insurance

Property insurance is a must. Depending on the type of business that is operating out of your warehouse, insurance costs can be highly variable. For example, a chemical storage facility carries a higher risk than a retail storage space and so insurance costs will be much higher.

Some of the most influential factors that affect insurance costs can include:

  • Construction - Steel and metal buildings are considered to be safer and require less maintenance than wooden structures.
  • Occupants - The type of business operating out of your building can affect your insurance rates.
  • Location - Buildings located in areas with high crime rates generally cost more to insure.


If you own more than one property, you can benefit from hiring a property management company to handle some of the paperwork and other day-to-day tasks. Of course, you’ll have to pay them, so this is another expense to consider.

Being Prepared for Long-Term Costs

The costs of maintaining your industrial complex go far beyond the initial construction and purchase price. There is a lot of work that goes into keeping a structure operable, so building owners need to be prepared for long-term maintenance costs such as repairs, insurance and taxes.


Topics: Property Management

Keni Flowers

Written by Keni Flowers

Keni Flowers-Baird is the Senior Property Manager for Demetree Real Estate Services. She joined the company in December of 2016 with more than 13 years of experience in managing residential, retail, office and mixed-use assets.