The lease says $9/Sq Ft. Seems reasonable. Then you get the bill, and it’s $14/Sq Ft 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 Sq Ft) averages $9 to $12/Sq Ft annually for base rent in quality locations, but by the time you factor in everything, you’re looking at $13 to $18/Sq Ft.
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 to 500 Sq Ft: $11 to $15/Sq Ft annually ($183 to $625/mo base rent)
- 500 to 1,000 Sq Ft: $9 to $12/Sq Ft annually ($375 to $1,000/mo base rent)
- 1,000 to 2,000 Sq Ft: $8 to $11/Sq Ft annually ($667 to $1,833/mo base rent)
But base rent is only part of the equation.
The Hidden Costs That Add 40 to 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 to $5.00/Sq Ft annually. For a 1,000 Sq Ft space, that’s $250 to $417/mo on top of base rent.
- CAM (Common Area Maintenance): parking lot maintenance, landscaping, snow removal (significant in Minnesota), and exterior repairs. Budget $1.50 to $3.00/Sq Ft annually.
- Utilities: electricity, water, gas, and trash removal run $100 to $300/mo for 500 to 1,000 Sq Ft. Heating costs spike dramatically in winter, a space costing $100/mo to heat in September might cost $300 to $400 in January.
- Building maintenance: HVAC repairs, plumbing, and electrical work. Some leases make you responsible for everything inside your unit. Budget $500 to $2,000 annually.
- Insurance: general liability and property insurance, typically $500 to $2,000/year for small operations.
- Security deposit: usually 1 to 3 months’ rent upfront.
- Equipment and build-out: shelving, racking, pallet jacks, and workbenches. Budget $2,000 to $10,000 depending on needs.
When you add it all up, that $9/Sq Ft base rent becomes $13 to $16/Sq Ft all-in.
Real Cost Breakdown: Two Common Warehouse Sizes
500 Sq Ft (Growing Business)
Traditional lease: base rent $10/Sq Ft is $417/mo, plus NNN and CAM at $4.00/Sq Ft ($167/mo), plus utilities $100 to $200/mo with winter spikes, plus insurance $75/mo, for a monthly total of $759 to $859, plus $1,200 to $2,500 deposit and $2,000 to $5,000 equipment upfront.
Co-warehousing at WareSpace: a 500 to 800 Sq Ft unit runs from $1,400/mo all-inclusive, with equipment availability confirmed by building and one month’s deposit, no separate utility, CAM, or insurance bills.
1,000 Sq Ft (Established Operation)
Traditional lease: base rent $9/Sq Ft is $750/mo, plus NNN and CAM at $4.00/Sq Ft ($333/mo), plus utilities $175 to $350/mo with significant winter heating, plus insurance $100/mo, for a monthly total of $1,358 to $1,533, plus $2,250 to $4,500 deposit and $3,000 to $8,000 equipment upfront.
Co-warehousing at WareSpace: a 900 to 1,400 Sq Ft unit runs from $1,900/mo all-inclusive, equipment availability confirmed by building, one month’s deposit only.
Where Costs Vary by Neighborhood
- Eden Prairie / Golden Triangle: premium rates at $10 to $13/Sq Ft base rent, professional environment and modern buildings. Total occupancy $14 to $18/Sq Ft.
- St. Paul Midway: middle market at $8 to $11/Sq Ft base rent, central location, mixed building stock. Total occupancy $11.50 to $15.50/Sq Ft.
- Bloomington: competitive rates at $7 to $10/Sq Ft base rent with airport proximity. Total occupancy $10 to $14/Sq Ft.
- Northeast Minneapolis: limited inventory, premium when available at $9 to $12/Sq Ft. Total occupancy $12.50 to $16/Sq Ft.
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 $1,000/mo.
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, 24/7 building access, loading dock access, industrial racking and shelving, shared equipment like pallet jacks and carts, WiFi, conference room access, kitchen facilities, on-site management, and security. 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). Compare options on our pricing page.
Minneapolis-St. Paul Warehouse Costs FAQs
What’s the average cost to rent warehouse space in Minneapolis-St. Paul? For spaces under 2,000 Sq Ft, expect $9 to $14/Sq Ft annually base rent, plus another $4 to $5/Sq Ft for NNN, CAM, and utilities. A 500 Sq Ft unit typically runs $700 to $1,200/mo all-in on a traditional lease.
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/mo in September might cost $300 to $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 to 2,000 Sq Ft at Eden Prairie and St. Paul Midway with all-inclusive pricing starting at $1,000/mo, no hidden fees, and flexible 6 to 12 month leases. Book a tour or get an instant quote, and see the small warehouse rental guide for the bigger picture.
