The lease says $9/SF. Seems reasonable. Then you get the bill, and it’s $14/SF once you add 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 Minneapolis-St. Paul, 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.
The Twin Cities small warehouse market (under 2,000 SF) averages $9-12/SF annually for base rent in quality locations. But that’s just the starting point. By the time you factor in all the additional costs, you’re looking at $13-18/SF for traditional leases—or $1,200-2,400 monthly for a 1,000 SF space.
Understanding Minneapolis-St. Paul Warehouse Rental Costs
Base rent is what landlords advertise. In the Twin Cities, expect these ranges for small warehouse space:
- 200-500 SF: $11-15/SF annually ($183-625/month base rent)
- 500-1,000 SF: $9-12/SF annually ($375-1,000/month base rent)
- 1,000-2,000 SF: $8-11/SF annually ($667-1,833/month base rent)
But base rent is only part of the equation.
The Hidden Costs That Add 40-60% to Your Warehouse Rent
NNN (Triple Net) Charges – Property taxes, building insurance, and common area maintenance. In Minneapolis-St. Paul, this adds $3.00-5.00/SF annually. For a 1,000 SF space, that’s $250-417/month on top of base rent.
CAM (Common Area Maintenance) – Parking lot maintenance, landscaping, snow removal (significant in Minnesota), exterior repairs. Budget $1.50-3.00/SF annually.
Utilities – Electricity, water, gas, trash removal. Warehouse utilities run $100-300/month for 500-1,000 SF. Critical: heating costs spike dramatically in winter. A space costing $100/month to heat in September might cost $300-400 in January.
Building Maintenance – HVAC repairs, plumbing, and electrical work. Some leases make you responsible for everything inside your unit. Budget $500-2,000 annually.
Insurance – General liability and property insurance. Typically $500-2,000/year for small operations.
Security Deposit – Usually 1-3 months’ rent upfront.
Equipment & Build-Out – Shelving, racking, pallet jacks, workbenches. Budget $2,000-10,000 depending on needs.
When you add it all up, that $9/SF base rent becomes $13-16/SF all-in.
Real Cost Breakdown: Two Common Warehouse Sizes
500 SF (Growing Business)
Traditional Lease:
- Base rent: $10/SF = $417/month
- NNN/CAM: $4.00/SF = $167/month
- Utilities: $100-200/month (winter spikes)
- Insurance: $75/month
- Monthly Total: $759-859
- Upfront Costs: $1,200-2,500 deposit + $2,000-5,000 equipment
Co-Warehousing (WareSpace):
- All-inclusive rate: $1,000-1,400/month
- Deposit: $1,000-1,400
- Equipment: included
- Monthly Total: $1,000-1,400
- Upfront Costs: $1,000-1,400 deposit only
1,000 SF (Established Operation)
Traditional Lease:
- Base rent: $9/SF = $750/month
- NNN/CAM: $4.00/SF = $333/month
- Utilities: $175-350/month (significant winter heating)
- Insurance: $100/month
- Monthly Total: $1,358-1,533
- Upfront Costs: $2,250-4,500 deposit + $3,000-8,000 equipment
Co-Warehousing (WareSpace):
- All-inclusive rate: $1,400-1,800/month
- Equipment: included
- Monthly Total: $1,400-1,800
- Upfront Costs: $1,400-1,800 deposit only
Where Costs Vary by Neighborhood in Warehouse Space
- Eden Prairie / Golden Triangle – Premium rates at $10-13/SF base rent. Professional environment, modern buildings. Total occupancy: $14-18/SF.
- St. Paul Midway – Middle market at $8-11/SF base rent. Central location, mixed building stock. Total occupancy: $11.50-15.50/SF.
- Bloomington – Competitive rates at $7-10/SF base rent. Airport proximity. Total occupancy: $10-14/SF.
- Northeast Minneapolis – Limited inventory, premium when available at $9-12/SF. Total occupancy: $12.50-16/SF.
WareSpace has locations in Eden Prairie (7500 Golden Triangle Dr) and St. Paul Midway (801 Transfer Road)—both with the same all-inclusive pricing structure starting at $550/month.
What “All-Inclusive Pricing” Actually Means
At WareSpace Minneapolis-St. Paul, your rate covers:
- Base rent
- Property taxes
- Building insurance
- Common area maintenance
- All utilities (including heat, significant in Minnesota)
- 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 about who pays for repairs.
The predictability matters more than the rate when budgeting for a growing business. Traditional leases have variable costs that change seasonally (heating in Minnesota is expensive) and annually (property taxes go up, CAM fees increase).
Minneapolis-St. Paul Warehouse Costs FAQs
What’s the average cost to rent warehouse space in Minneapolis-St. Paul?
For spaces under 2,000 SF, expect $9-14/SF annually base rent, plus another $4-5/SF for NNN/CAM and utilities. A 500 SF unit typically runs $700-1,200/month all-in.
How much should I budget for heating a Minneapolis warehouse in winter?
Plan for utility costs to double or triple in the winter months. A space costing $100/month in September might cost $300-400 in January. All-inclusive pricing eliminates this unpredictability.
Are NNN and CAM charges negotiable?
Rarely. NNN charges are pass-through costs. Your best leverage is on base rent or lease terms.
WareSpace Minneapolis-St. Paul offers warehouse space from 200-2,000 SF at Eden Prairie and St. Paul Midway with all-inclusive pricing starting at $550/month. No hidden fees, no surprise charges. Flexible 6-12 month leases. Book a tour.
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