How Much Does It Cost to Rent a Warehouse? Conventional vs Automated Warehouse Costs

The first question most warehouse hunters ask is "how much is the rent?" But rent per square meter is only part of the cost. A cheap warehouse can cost you more in labor, transport and damaged stock. This article helps you compare properly.

What determines warehouse rent?

Factor	How it affects price
Location	Near Bangkok, airports or ports usually costs more, but saves on transport
Size	Larger spaces usually get a better price per square meter
Building specs	Height, floor load, number of loading docks and fire systems
Temperature control	Chilled and frozen storage cost more than standard space
Lease length	Longer leases usually get better terms

What hidden costs should you ask about?

Deposit and advance rent
Common area and building service fees
Electricity, especially for cold storage
Insurance for goods and building
Fit-out costs and reinstatement at the end of the lease
Equipment such as racking and forklifts, if not provided

Is automated warehouse rent really higher?

Total storage cost = rent + labor + equipment + utilities + losses from stock errors

With a conventional warehouse, rent covers only the empty space. You then pay separately for everything needed to run it: racking, forklifts and other material handling equipment (MHE), the staff to operate them, and maintenance.

Take OMEGA 1 as an example. An automated warehouse lease there includes more than space: it also includes the ASRS automation equipment and pallet racking, already installed and maintained. That replaces many of the costs you would otherwise pay on top of rent:

Cost	Conventional warehouse	OMEGA 1
Warehouse space	Included in rent	Included in lease
Pallet racking	You buy and install it	Included (ASRS)
Forklifts and other MHE	You buy or rent them	Far fewer needed
Labor for storing and retrieving pallets	Many forklift drivers	ASRS machines do the work
Equipment maintenance	You arrange and pay for it	Supported by the on-site team
Floor area	Large area with wide forklift aisles	Smaller unit, with pallets stored densely in the ASRS

So when you compare rents, compare what each one includes. One OMEGA 1 tenant, a large retailer, cut costs by at least 8% compared with a conventional warehouse operation, through savings on space, racking, labor and material handling equipment.

Lease, build your own or lease automated: which is best?

There are three ways to set up your warehouse:

	Lease a conventional warehouse	Build your own automated warehouse (build-to-suit)	Lease an automated warehouse (OMEGA 1)
Upfront investment	Racking and forklifts	Very high: land, building and automation systems	No racking or automation investment
Rent or ownership cost	Lower rent per sqm	No rent, but depreciation and financing costs	Lower total cost, with ASRS and racking included
Pallets per sqm	Fewer	More	More
Labor	High	Low	Low
Stock accuracy	Depends on people	High	High
Time to start	Fast	Long (planning and construction)	Fast; one tenant started within 2 weeks
Flexibility	Fixed space	Fixed asset, hard to change	Add pallet storage as you grow
Automation know-how	Not needed	You need your own team	Supported by the OMEGA 1 on-site team

Building your own suits businesses that need a highly specialized system, plan to use it for many years and have the capital ready. For most others, leasing an automated warehouse gives the same benefits with far less upfront investment and risk.

When is a conventional warehouse still the better choice?

An automated warehouse isn't right for everyone. A conventional warehouse may suit you better if:

You have low stock volumes
Your goods don't fit a standard pallet because of their size or shape

Not sure which fits your business? Our team can compare both options using your own numbers.

The future is OMEGA

Ally Logistic Property (ALP) is setting a new benchmark in smart logistics infrastructure with OMEGA Logistics Infrastructure-As-A-Service. One-stop service for warehouse space, automation integration, and maintenance, ensuring you a seamless transition into the future of warehousing.

Untitled design-2 Traditional warehouse VS OMEGA

What should you check before renting a warehouse?

How much space do you need now, and in 2–3 years?
How often do goods move in and out, daily or monthly?
Is the location close to customers, the port or the airport? [link to Blog 5]
Building specs: height, floor load, loading docks and fire systems
Is the lease flexible enough for growth?
What does the rent include, and are there extra costs?

Frequently asked questions

Is automated warehouse rent higher than conventional warehouse rent?

Per square meter, ce yes. But at OMEGA 1 the lease also includes the ASRS and racking, which lowers your total cost. One tenant cut costs by at least 8% compared with a conventional warehouse operation.

What's included in an OMEGA 1 lease?

Your warehouse unit plus pallet storage in the ASRS, with the racking and automation equipment already installed and maintained.

What if I don't want to run the warehouse myself?

Contact us and we can introduce you to 3PL companies already operating at OMEGA 1. They can provide the operation services, while you still benefit from the ASRS.

Does OMEGA 1 offer short-term leases?

Yes. Short-term leases are available for peak seasons and temporary projects, with terms agreed case by case. Talk to our team for options.

How do I get a quote?

Tell us the space, pallet count and lease length you need, and our team will send you a quote. You can also drop your request here.

Request a quote

Tell us the space, pallet count, product type and lease length you need, and our team will send you a quote and a cost comparison with your current operation. Learn more about OMEGA 1.

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