The Hidden Costs of Dallas-Fort Worth Warehouse Leases: What That $8/SF Quote Actually Means

5 minutes

The lease says $8/SF. Seems reasonable. Then you receive the bill, and it’s $11.50/SF after adding NNN charges, CAM fees, utilities, insurance, and maintenance. Welcome to commercial real estate.

If you’re trying to figure out what warehouse space actually costs in Dallas-Fort Worth, the published rates don’t tell the full story. Most small businesses budget for rent, only to be surprised by the additional costs that come with a traditional warehouse lease.

Dallas-Fort Worth’s small warehouse market (under 2,000 SF) averages $7-11/SF annually for base rent. But that’s just the starting point. By the time you factor in all the additional costs, you’re looking at $10-15/SF for traditional leases, or $1,000-2,500 monthly for a 1,000 SF space.

Let’s break down what you actually pay.

 

Understanding Dallas-Fort Worth Warehouse Rental Costs

Base rent is what landlords advertise. It’s the rate per square foot you’ll see in listings. In Dallas-Fort Worth, expect these ranges for small warehouse space:

  • 200-500 SF: $9-14/SF annually ($150-580/month base rent)
  • 500-1,000 SF: $8-11/SF annually ($330-920/month base rent)
  • 1,000-2,000 SF: $7-10/SF annually ($580-1,670/month base rent)

But base rent is only part of the equation. Here’s what else you’re paying:

 

The Hidden Costs That Add 30-40% to Your Warehouse Rent

1. NNN (Triple Net) Charges

Property taxes, building insurance, and common area maintenance. In Dallas-Fort Worth, this adds $2.00-4.00/SF annually. For a 1,000 SF space, that’s $165-335/month on top of base rent.

Texas property taxes are significant – often $1.50-2.50/SF alone.

2. CAM (Common Area Maintenance)

Parking lot maintenance, landscaping, exterior repairs, and shared space cleaning. Sometimes included in NNN, sometimes separate. Budget $0.50-1.50/SF annually ($40-125/month for 1,000 SF).

3. Utilities

Electricity, water, gas, and trash removal. Warehouse utilities in Dallas-Fort Worth run $100-250/month for 500-1,000 SF, depending on climate control, lighting, and usage. Summer AC bills spike significantly.

4. Building Maintenance

HVAC repairs, plumbing, electrical work, and structural maintenance. Some leases make you responsible for everything inside your unit. Budget $500-2,500 annually.

5. Insurance

General liability and property insurance for your business. Landlords require proof of coverage. Cost varies by industry and inventory value, typically $500-2,000/year for small operations.

6. Security Deposit

Usually 1-2 months’ rent. You need this cash upfront before moving in.

7. Equipment & Build-Out

Shelving, racking, pallet jacks, workbenches, lighting improvements – whatever your space needs. Budget $2,000-8,000 depending on your operation.

When you add it all up, that $8/SF base rent becomes $11-14/SF all-in for a traditional lease.

 

Real Cost Breakdown: Three Common Warehouse Sizes

Let’s look at what you actually pay monthly in Dallas-Fort Worth for different warehouse sizes:

 

200 SF (Small Operation)

Traditional Lease:

  • Base rent: $10/SF = $167/month
  • NNN/CAM: $3.00/SF = $50/month
  • Utilities: $50-75/month
  • Insurance: $50/month (prorated)
  • Monthly Total: $317-342
  • Upfront Costs: $500-700 deposit + $1,000-2,000 equipment

Co-Warehousing (WareSpace):

  • All-inclusive rate: $650-850/month
  • Deposit: 1 month
  • Equipment: included
  • Monthly Total: $650-850
  • Upfront Costs: 1 month deposit only

 

500 SF (Growing Business)

Traditional Lease:

  • Base rent: $9/SF = $375/month
  • NNN/CAM: $3.00/SF = $125/month
  • Utilities: $100-175/month
  • Insurance: $75/month (prorated)
  • Monthly Total: $675-750
  • Upfront Costs: $1,200-2,200 deposit + $2,000-4,000 equipment

Co-Warehousing (WareSpace):

  • All-inclusive rate: $1,000-1,400/month
  • Deposit: 1 month
  • Equipment: included
  • Monthly Total: $1,000-1,400
  • Upfront Costs: 1 month deposit only

 

1,000 SF (Established Operation)

Traditional Lease:

  • Base rent: $8/SF = $667/month
  • NNN/CAM: $3.00/SF = $250/month
  • Utilities: $175-300/month
  • Insurance: $100/month (prorated)
  • Monthly Total: $1,192-1,317
  • Upfront Costs: $2,000-4,000 deposit + $3,000-6,000 equipment

Co-Warehousing (WareSpace):

  • All-inclusive rate: $1,600-2,200/month
  • Deposit: 1 month
  • Equipment: included
  • Monthly Total: $1,600-2,200
  • Upfront Costs: 1 month deposit only

The pattern: traditional leases look cheaper on paper but require significant upfront investment. Co-warehousing costs more monthly but includes everything with minimal upfront costs.

 

Cost Comparison Table: Traditional vs. All-Inclusive

Cost Component

Traditional Lease

WareSpace (All-Inclusive)

Base Rent

$7-10/SF

NNN Charges (taxes, insurance, maintenance)

+$2-4/SF

Included

Utilities (electric, water, HVAC)

+$1-2/SF

Included

Equipment/Racking

+$2,000-6,000 upfront

Included

Wi-Fi/Internet

+$75-150/month

Included

Your Actual Cost

$10-15/SF + extras

One flat monthly rate

Where Dallas-Fort Worth Small Warehouse Costs Vary by Neighborhood

Location dramatically affects warehouse rental rates in Dallas-Fort Worth:

Fort Worth / University South

Best value in the metro. Base rates run $7-9/SF ($0.58-0.75/SF monthly). Add $2.50-3.50/SF for NNN/CAM.

  • 1,000 SF traditional lease: $900-1,200/month all-in
  • 1,000 SF co-warehousing: $1,400-1,800/month all-in

Why cheaper: More older buildings, lower Tarrant County property taxes, less competition from large corporations driving up demand.

North Richland Hills / Mid-Cities

Middle ground. Base rates run $8-10/SF ($0.67-0.83/SF monthly). Add $2.75-3.75/SF for NNN/CAM.

  • 1,000 SF traditional lease: $1,000-1,400/month all-in
  • 1,000 SF co-warehousing: $1,500-2,000/month all-in

Central positioning between Dallas and Fort Worth. Good highway access.

Carrollton / Farmers Branch

Dallas-side value. Base rates run $8-11/SF ($0.67-0.92/SF monthly). Add $3.00-4.00/SF for NNN/CAM.

  • 1,000 SF traditional lease: $1,100-1,500/month all-in
  • 1,000 SF co-warehousing: $1,600-2,100/month all-in

More reasonable than Plano/Addison while still on the Dallas side.

Richardson

Moderate premium. Base rates run $9-12/SF ($0.75-1.00/SF monthly). Add $3.00-4.00/SF for NNN/CAM.

  • 1,000 SF traditional lease: $1,200-1,600/month all-in
  • 1,000 SF co-warehousing: $1,700-2,300/month all-in

Near Telecom Corridor corporate concentration.

Addison

Tight market premium. Base rates run $10-13/SF ($0.83-1.08/SF monthly). Add $3.25-4.25/SF for NNN/CAM.

  • 1,000 SF traditional lease: $1,350-1,750/month all-in
  • 1,000 SF co-warehousing: $1,900-2,500/month all-in

90% occupied – limited options mean higher prices for what’s available.

Plano

Highest in the metro. Base rates run $11-15/SF ($0.92-1.25/SF monthly). Add $3.50-4.50/SF for NNN/CAM.

  • 1,000 SF traditional lease: $1,500-2,000/month all-in
  • 1,000 SF co-warehousing: $2,100-2,800/month all-in

Limited industrial inventory in a residential/retail city. You’re paying for the address and corporate proximity.

Fort Worth vs. Plano: The 3-Year Cost Difference

Here’s what location choice means for a 1,000 SF space over 3 years:

Fort Worth

Plano

Difference

Monthly (traditional)

~$1,050

~$1,750

$700/month

Annual

$12,600

$21,000

$8,400/year

3-Year Total

$37,800

$63,000

$25,200

If you don’t need a Plano address, that’s $25,000 staying in your business over three years.

 

What “All-Inclusive Pricing” Actually Means

All-inclusive pricing bundles everything into one monthly rate. At WareSpace Dallas-Fort Worth, your rate covers:

  • Base rent
  • Property taxes
  • Building insurance
  • Common area maintenance
  • All utilities (electric, water, gas, trash)
  • Climate control (HVAC)
  • 24/7 building access
  • Loading dock access
  • Industrial racking and shelving
  • Shared equipment (pallet jacks, carts)
  • WiFi internet
  • Conference room access
  • Kitchen facilities
  • On-site management
  • Security systems

One monthly payment. No surprise bills. No arguing with the landlord about who pays for repairs.

The predictability matters more than the rate when you’re budgeting for a growing business. Traditional leases have variable costs that change annually – property taxes go up, CAM fees increase, and utility rates change. All-inclusive pricing locks in your costs for the lease term.

 

How Lease Terms Affect Total Warehouse Costs

Traditional warehouse leases in Dallas-Fort Worth typically require:

  • 3-5 year commitment  –  Landlords want long-term tenants. Shorter leases (if available) come with 15-25% rate premiums.
  • Personal guarantees  –  You’re personally liable if the business can’t pay. Your credit and personal assets are on the line.
  • Fixed rent increases  –  Annual increases of 3-5% are standard. Your year-one rate isn’t your year-three rate.
  • Early termination penalties  –  Breaking a lease early typically costs 3-6 months’ rent, sometimes more.
  • Build-out restrictions  –  Major improvements might require landlord approval. You might not recoup the investment if you leave.

Co-warehousing (like WareSpace) offers different terms:

  • 6-12 month leases  –  Short-term commitments. Scale up or down as needed.
  • No personal guarantees  –  Business liability only. Your personal assets aren’t at risk.
  • Predictable pricing  –  Rates stay consistent for your lease term.
  • Flexible termination  –  Give 30-60 days’ notice. No massive penalties.
  • Move-in ready  –  No build-out needed. Everything’s already set up.

The flexibility option costs more per month but helps you avoid being stuck in the wrong space for years.

 

Dallas-Fort Worth Small Warehouse Costs: Frequently Asked Questions

What’s the average cost to rent warehouse space in Dallas-Fort Worth?

For spaces under 2,000 SF, expect $10-15/SF annually all-in, depending on size and location. A 500 SF unit typically runs $700-1,400/month total. Smaller units cost more per square foot; larger units cost less per square foot.

What’s cheaper: Fort Worth or Dallas suburbs?

Fort Worth is 20-35% cheaper, with all-in costs around $10-12/SF annually versus $13-16/SF in Plano or Addison. But factor in your commute and customer locations – sometimes a central location saves money on drive time.

Are NNN and CAM charges negotiable?

Rarely for small spaces. NNN charges are pass-through costs (property taxes, insurance). CAM charges are more negotiable, but landlords usually don’t budge much on small leases. Your best leverage is on base rent or lease terms.

How much should I budget for warehouse utilities in Dallas-Fort Worth?

Plan on $50-100/month for a 200-400 SF space, $100-200/month for 500-800 SF, and $175-350/month for 1,000-2,000 SF. Climate-controlled spaces cost more. Summer AC bills spike significantly – budget for July and August being 30-50% higher.

What size warehouse do I need in Dallas-Fort Worth?

Rough guide: 200-500 SF for solo operations with limited inventory. 500-1,000 SF for small teams or moderate inventory. 1,000-2,000 SF for established businesses with significant stock or equipment. Always budget 20-30% more space than you think you need for growth.

WareSpace Dallas-Fort Worth offers warehouse space from 200-2,000 SF with all-inclusive pricing. No hidden fees, no surprise charges, no equipment costs. Flexible lease terms and move-in ready units. Book a tour to see exact pricing for your space needs.

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