The Hidden Costs of Fort Lauderdale Warehouse Leases: What That $15/SF Quote Actually Means

The listing says $15/SF. Add NNN charges at $5/SF, utilities at $150/month, hurricane insurance at $3,000/year, and $4,000 upfront for racking and deposits, and that $15/SF space costs $22-26/SF.

The advertised rate tells roughly half the story.

South Florida Warehouse Rents: The Starting Point

Broward County industrial rents average $15-17/SF, with small-bay space (under 5,000 SF) often running $17-20/SF due to limited supply. That’s up 55-57% since 2019 – one of the steepest increases in the country.

For small warehouse space in Fort Lauderdale, expect these base rent ranges:

• 300-500 SF: $18-22/SF annually ($450-920/month base)
• 500-1,000 SF: $15-19/SF annually ($625-1,580/month base)
• 1,000-2,000 SF: $13-17/SF annually ($1,080-2,830/month base)

But base rent is just where the math starts.

The Hidden Costs That Add 40-70% to Your Rent

• NNN (Triple Net) Charges: $4-7/SF

NNN stands for “net, net, net” – meaning you pay your share of property taxes, building insurance, and common area maintenance on top of base rent.

In Broward County, NNN charges typically run $4-7/SF annually. For a 1,000 SF space, that’s $333-583/month added to your base rent.

NNN charges aren’t fixed – they fluctuate based on property tax assessments, insurance renewals, and maintenance costs. Your NNN this year might be $5/SF; next year it could be $6.50/SF after a tax reassessment.

• Utilities: $100-300/Month

Industrial space utilities include:

• Electricity: $0.10-0.15/kWh in Florida. A 1,000 SF climate-controlled space runs $100-200/month depending on efficiency.
• Water/sewer: Usually minimal for warehouse use ($20-50/month).
• Trash: Often included in NNN, sometimes billed separately ($30-75/month).

Climate-controlled space costs more to operate. Budget higher if you’re running HVAC hard to maintain humidity control.

• Hurricane Insurance: $1,500-4,000/Year

This is the Florida-specific cost that catches people off guard. Standard commercial property insurance doesn’t fully cover hurricane damage. You’ll need:

• Windstorm coverage: Required for any financed property, strongly recommended regardless
• Flood insurance: Required if you’re in a flood zone (many Broward properties are)

For a small space, expect $1,500-4,000 annually in total insurance costs – potentially higher in Special Flood Hazard Areas.

• Equipment and Setup: $2,000-5,000 Upfront

Traditional leases often come as empty shells. You’ll need:

• Industrial racking: $500-2,000
• Workbenches/tables: $300-1,000
• Lighting improvements: $200-500
• Internet setup: $100-300

Budget $2,000-5,000 minimum for basic setup, more if you need specialized equipment.

Real Cost Breakdown for Warehouse Space in South Florida

• 500 SF (Small Operation)

Traditional Lease:

• Base rent: $17/SF = $708/month
• NNN charges: $5/SF = $208/month
• Utilities: $100/month
• Insurance: $150/month (prorated)
• Monthly total: $1,166
• Upfront costs: $2,500 deposit + $2,500 equipment = $5,000

Co-Warehousing (WareSpace):

• All-inclusive rate: $750-1,000/month
• Security deposit: $750-1,000
• Equipment: Included
• Monthly total: $750-1,000
• Upfront costs: $750-1,000 deposit only

• 1,000 SF (Growing Business)

Traditional Lease:

• Base rent: $15/SF = $1,250/month
• NNN charges: $5/SF = $417/month
• Utilities: $175/month
• Insurance: $200/month (prorated)
• Monthly total: $2,042
• Upfront costs: $4,500 deposit + $3,500 equipment = $8,000

Co-Warehousing (WareSpace):

• All-inclusive rate: $1,000-1,500/month
• Security deposit: $1,000-1,500
• Equipment: Included
• Monthly total: $1,000-1,500
• Upfront costs: $1,000-1,500 deposit only

• 2,000 SF (Established Operation)

Traditional Lease:

• Base rent: $14/SF = $2,333/month
• NNN charges: $5/SF = $833/month
• Utilities: $300/month
• Insurance: $300/month (prorated)
• Monthly total: $3,766
• Upfront costs: $8,000 deposit + $5,000 equipment = $13,000

Co-Warehousing (WareSpace):

• All-inclusive rate: $1,500-2,000/month
• Security deposit: $1,500-2,000
• Equipment: Included
• Monthly total: $1,500-2,000
• Upfront costs: $1,500-2,000 deposit only

Common Mistakes When Signing Your First Warehouse Lease (And How to Avoid Them)

Mistake 1: Focusing Only on Base Rent

That $15/SF listing looks affordable until you add NNN ($5/SF), Florida’s hurricane insurance ($3,000/year), utilities ($150/month), and equipment ($4,000 upfront). The all-in cost is 40-70% higher than the advertised rate.

How to avoid it: Always calculate the total monthly cost, including NNN, utilities, and insurance. Ask landlords for current NNN amounts and historical increases.

Mistake 2: Underestimating Hurricane Insurance

South Florida requires windstorm coverage that other markets don’t. Budget $1,500-4,000 annually for a small warehouse space. Buildings in flood zones require additional flood insurance.

How to avoid it: Get insurance quotes before signing a lease. Ask about the building’s flood zone status. HVHZ-compliant construction often qualifies for better rates.

Mistake 3: Skipping Climate Control to Save Money

South Florida’s 80-90% humidity destroys inventory faster than any other market in the U.S. Sellers operating from unconditioned space lose 3-8% of inventory value annually to humidity damage—$1,500-4,000 on $50,000 in stock.

How to avoid it: Climate control isn’t optional in South Florida for most products. Factor it into your budget from the start. The premium costs far less than damaged inventory.

Mistake 4: Signing a Long Lease When You’re Growing

Locking into a 3-year lease on 800 SF seems smart until you’re doing 3x the volume 18 months later. Breaking a commercial lease is expensive—often requiring you to pay the remainder or find a replacement tenant.

How to avoid it: If growth is uncertain, start with shorter terms (6-12 months) even if monthly costs are higher. The flexibility premium is often worth it.

Mistake 5: Ignoring Flood Zone Status

Updated FEMA maps took effect in July 2024, adding properties across Broward to flood zones. Flood insurance in Special Flood Hazard Areas can add $2,000-5,000 annually to your costs.

How to avoid it: Check flood zone status before signing any lease. Buildings elevated above base flood elevation or located outside flood zones avoid this cost entirely.

Fort Lauderdale Neighborhoods: Where Costs Vary