The lease says $11/sq ft. Seems reasonable. You do the math: 1,000 sq ft × $11 = $11,000/year, divided by 12 = $917/month. Your budget can handle that.
Then you get the full breakdown. Base rent is $917/month. Property taxes add $250 (Cook County taxes hit hard). Insurance adds $63. Common area maintenance adds $167. Utilities run $200 in winter when you’re heating the space. Suddenly, the $917 space costs $1,597/month. Next year, CAM increases after parking lot repairs. Your rent goes up even though the base rate stayed flat.
If you’re trying to figure out what warehouse space actually costs in Chicago, the published rates tell maybe half the story.
Understanding Chicago Warehouse Rental Costs
Base rent is what landlords advertise—the headline number you see in listings. In Chicago’s current market, expect these ranges for small warehouse space:
200-500 sq ft: $12-$16/SF annually ($200-$667/month base rent)
500-1,000 sq ft: $11-$14/SF annually ($458-$1,167/month base rent)
1,000-2,000 sq ft: $10-$13/SF annually ($833-$2,167/month base rent)
These rates come from Q4 2025 market data showing Chicago industrial averaging around $8.50-9.70/SF overall, with small-bay space commanding premiums of $11-12/SF and flex space reaching $15/SF. Small-bay vacancy runs under 3%—significantly tighter than the overall market.
Base rent is your starting point. Here’s what else you’re paying:
The Hidden Costs That Add 40-60% to Your Chicago Warehouse Rent
NNN (Triple Net) Charges
Property taxes, building insurance, and common area maintenance are passed through to tenants. In Chicago, this adds $3-5/SF annually—and property taxes vary dramatically by county.
Property taxes: Cook County commercial rates run among the highest in the nation at a 4-6% effective rate. DuPage County rates run roughly half that at 1.8-2.5%. For tenants, expect $2.00-4.00/SF annually passed through, depending on location.
Building insurance: Landlord’s property insurance allocated across tenants. Typically $0.50-1.00/SF annually.
Common area maintenance (CAM): Parking lot repairs, landscaping, shared HVAC, security, property management—everything operating the building beyond your individual space. Chicago CAM runs $1.00-2.50/SF annually.
For a 1,000 SF space, NNN charges add $250-417/month on top of base rent.
Utilities
Traditional leases don’t include utilities. You set up separate accounts:
Electricity: ComEd rates run approximately 9.6-10.5¢/kWh—roughly 45% above the national industrial average. A 1,000 SF climate-controlled warehouse runs $150-250/month depending on season and equipment.
Natural Gas: Nicor Gas charges approximately 42¢/therm plus distribution. Chicago winters mean real heating costs—budget $100-200/month November through March for a 1,000 SF space.
Water/Sewer: $30-50/month for basic warehouse use.
Internet: $75-150/month, depending on speed requirements.
For a 1,000 SF climate-controlled space, budget $250-450/month utilities depending on season.
Building Maintenance
Some leases make you responsible for everything inside your unit—HVAC repairs, plumbing, and electrical work. Budget $500-2,000 annually for maintenance issues.
Insurance
Landlords require general liability insurance ($1-2 million coverage) naming them as additional insured. You’ll also want contents coverage for your equipment and inventory. Cost varies by industry and inventory value: $500-2,000/year for small operations.
Security Deposit
Usually 1-3 months’ gross rent (including NNN). For a $1,600/month space, you need $1,600-4,800 cash upfront before moving in.
Equipment and Build-Out
Shelving, racking, pallet jacks, workbenches, and lighting improvements. Traditional spaces often come as empty shells. Budget $2,000-10,000, depending on what you need.
Real Cost Breakdown: Three Common Chicago Warehouse Sizes
400 SF (Small Operation)
Traditional Lease:
- Base rent: $12/SF = $400/month
- NNN/CAM: $4/SF = $133/month
- Utilities: $100-175/month
- Insurance: $50/month (prorated)
- Monthly Total: $683-758
- Upfront Costs: $1,500-2,500 deposit + $1,500-3,000 equipment
Co-Warehousing (WareSpace Downers Grove):
- All-inclusive rate: $800/month
- Deposit: $800
- Equipment: included
- Monthly Total: $800
- Upfront Costs: $800 deposit only
800 SF (Growing Business)
Traditional Lease:
- Base rent: $11/SF = $733/month
- NNN/CAM: $4/SF = $267/month
- Utilities: $175-300/month
- Insurance: $75/month
- Monthly Total: $1,250-1,375
- Upfront Costs: $2,500-4,000 deposit + $2,500-5,000 equipment
Co-Warehousing (WareSpace Downers Grove):
- All-inclusive rate: $1,550/month
- Deposit: $1,550
- Equipment: included
- Monthly Total: $1,550
- Upfront Costs: $1,550 deposit only
1,500 SF (Established Operation)
Traditional Lease:
- Base rent: $10/SF = $1,250/month
- NNN/CAM: $4/SF = $500/month
- Utilities: $300-450/month
- Insurance: $100/month
- Monthly Total: $2,150-2,300
- Upfront Costs: $4,000-6,500 deposit + $4,000-8,000 equipment
Co-Warehousing (WareSpace Downers Grove):
- All-inclusive rate: $2,075/month
- Deposit: $2,075
- Equipment: included
- Monthly Total: $2,075
- Upfront Costs: $2,075 deposit only
The pattern: traditional leases have lower monthly costs once you’re past year one, but require $5,000-15,000 upfront and lock you in for 3-5 years. Co-warehousing costs more monthly and requires only one month’s deposit to start.
How Location Affects Chicago Warehouse Costs
Chicago warehouse costs vary significantly between DuPage County (western suburbs) and Cook County (northern suburbs):
DuPage County (Downers Grove area)
Property tax advantage: Effective commercial rates run 1.8-2.5% compared to 4-6% in Cook County. For tenants in NNN leases, this means $1.50-2.50/SF lower annual pass-through costs.
1,000 SF all-in monthly cost: $1,100-1,500 traditional, $1,550 co-warehousing
WareSpace Downers Grove: $800/month (Small), $1,550/month (Medium), $2,075/month (Large), $3,000/month (X-Large)
Cook County (Wheeling area)
Higher base taxes, potential incentives: Cook County assesses commercial property at 25% of market value versus 10% for residential, then applies equalization factors. Class 6B Industrial Tax Incentive reduces assessment to 10% for qualifying industrial users—potentially cutting taxes by 60%.
O’Hare proximity premium: Northern suburbs closer to O’Hare command slightly higher rents due to logistics advantages.
1,000 SF all-in monthly cost: $1,200-1,650 traditional, $1,600 co-warehousing
WareSpace Wheeling: $875/month (Small), $1,600/month (Medium), $3,000/month (Large), $4,000/month (X-Large)
Cost Comparison Summary
Location
Traditional 1,000 SF
Co-Warehousing 1,000 SF
Key Factor
Downers Grove
$1,100-1,500/mo
$1,550/mo
Lower property taxes
Wheeling
$1,200-1,650/mo
$1,600/mo
O’Hare proximity
What “All-Inclusive Pricing” Actually Means
All-inclusive pricing bundles everything into one monthly rate. At WareSpace Chicago, your rate covers:
- Base rent
- Property taxes
- Building insurance
- Common area maintenance
- All utilities (electric, gas, water, 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. No annual CAM reconciliation invoices are showing up unexpectedly.
The predictability matters when you’re budgeting for a growing business. Traditional leases have variable costs that change annually—property taxes increase (especially in Cook County), CAM fees adjust, and utility rates shift. All-inclusive pricing locks in your costs for the lease term.
How Lease Terms Affect Total Chicago Warehouse Costs
Traditional Lease Terms
- 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 3-4% are standard. Your year-one rate isn’t your year-three rate.
- Early termination penalties: Breaking a lease early costs 3-6 months’ rent, sometimes more.
- CAM reconciliation: You pay estimated CAM monthly, then settle up annually against actual costs. If actual expenses exceeded estimates—major roof repair, parking lot repaving—you get a bill for the difference. Sometimes thousands of dollars with 30 days to pay.
Co-Warehousing Terms
- 6-month leases: Short-term commitments. Scale up or down as needed.
- No personal guarantees: Business credit only.
- 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.
Alessia Serafino needed warehouse space to get her Illinois liquor distribution license approved. Co-warehousing let her start with a small unit immediately rather than committing to a multi-year traditional lease before her business had revenue.
Common Chicago Warehouse Pricing Mistakes
- Comparing base rent only: An $10/SF NNN lease almost always costs more than $14/SF gross once you add all charges. Do the full calculation.
- Forgetting winter heating costs: Chicago winters mean real natural gas bills. Budget $100-200/month extra, November through March, compared to summer.
- Ignoring property tax differences: The same building in DuPage County vs. Cook County can have dramatically different NNN pass-throughs. Ask specifically about property taxes.
- Underestimating move-in costs: Traditional leases require substantial upfront capital. Security deposit, first month, potentially last month, equipment, utility deposits. Plan $5,000-15,000 beyond your first rent payment.
- Not calculating total cost of occupancy: The question isn’t “what’s the rent?” It’s “what do I write checks for each month, and what do I need to move in?”
Chicago Small Warehouse Costs FAQs
What’s the average cost to rent warehouse space in Chicago?
For spaces under 2,000 sq ft, expect $10-$16/SF annually for base rent, depending on size and location. A 500 SF unit runs $700-1,200/month all-in. Smaller units cost more per square foot; larger units cost less per square foot.
What’s cheaper: DuPage County or Cook County warehouse space?
DuPage County (Downers Grove area) typically runs 10-20% lower total occupancy cost due to significantly lower property taxes. However, if you qualify for Cook County’s Class 6B industrial tax incentive, that gap narrows substantially.
Are NNN and CAM charges negotiable in Chicago?
NNN charges (property taxes, insurance) are pass-through costs—not much room to negotiate. CAM charges have more flexibility, but landlords rarely budge significantly on small leases. Your leverage is on base rent or lease terms.
How much should I budget for warehouse utilities in Chicago?
Climate-controlled 500 SF: $100-200/month. Climate-controlled 1,000 SF: $200-400/month (higher in winter). ComEd electricity runs about 45% above national average, so budget accordingly.
What size warehouse do I need in Chicago?
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. Budget 20-30% more space than you think you need for growth.
WareSpace Chicago offers warehouse space from 200-2,000 sq ft at two locations: Downers Grove (starting at $800/month) and Wheeling (starting at $875/month). No hidden fees, no surprise charges, no equipment costs. Flexible 6-month leases. Book a tour to see exact pricing for your space needs.
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