Portland is the most expensive market to build industrial property, according to a new report from Cushman & Wakefield, with costs for medium-sized projects running $105 per square foot and larger projects clocking it at $98 per square foot.
Of the top six most expensive markets, four are on the West Coast and two are in Canada. Calgary, where large projects come in at $101 psf to build and medium projects cost $98 psf, is #2 on the list. San Diego follows at #3, with prices for medium and large projects coming it at $101 psf and $92 psf, followed by Seattle ($100 psf for medium projects and $92 psf) and Oakland ($100 psf and $93 psf, respectively).
Conversely, the most cost-effective cities to build industrial projects include Houston, Memphis, Mexico City, Guadalajara, Louisville, and Nashville.
On average, North American costs for industrial properties averaged at $86 psf for medium-sized projects, which Cushman quantifies as buildings in excess of 476,400 square feet, and $78 psf for larger projects (those greater than 901,000 sf).