Leasing a Warehouse: NNN Rent, Hidden Costs and Lease Terms Explained
How industrial warehouse leases are priced (per sq ft per year, NNN), the extra costs to budget, clear height, docks and the lease terms to negotiate.
Updated October 25, 2026 · 6 min read
General information checked 2026-10-25, not legal or real-estate advice. Rents vary widely by market.
How warehouse rent is quoted
U.S. industrial space is usually quoted per square foot per year. A quote of “$10.00 NNN” on 20,000 sq ft means base rent of $200,000 a year (about $16,700 a month) plus NNN charges. Some small units are quoted per month or “gross” (charges included) — always ask which.
Costs beyond rent
- NNN / CAM charges — taxes, insurance and maintenance, often a few dollars per sq ft per year.
- Utilities — power for lighting, forklifts charging, HVAC or refrigeration.
- Fit-out — racking, office build-out, dock equipment, security.
- Equipment and staff — forklifts, a WMS, labor.
- Deposit — often several months of rent.
Building specs that matter
- Clear height — usable height under the lowest obstruction; higher means more pallet levels per sq ft.
- Dock doors — number of dock-high doors and drive-in doors, plus levelers.
- Truck court — room for 53 ft trailers to turn and park.
- Column spacing and floor — affects racking layout and load capacity.
- Power and sprinklers — needed for charging, refrigeration and high-pile storage.
Lease terms to negotiate
Free-rent months, tenant-improvement allowance, annual rent increases (escalations), renewal and expansion options, who repairs the roof and HVAC, and what you must restore when you leave. If you are unsure you will fill the space, compare with public or contract warehousing and estimate both with the warehouse cost calculator.
Find warehouse space near you
Browse warehouses, 3PL and fulfillment companies and cold storage by state and city, then contact them directly. Read our cost guide and use the pallet calculator first.
- Real businesses from public records
- No invented reviews or prices
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Find warehouses near you
Warehouses, 3PLs and cold storage by state and city.
Frequently asked questions
What does NNN mean?
Triple net: on top of base rent, the tenant pays its share of property taxes, building insurance and common-area maintenance (CAM).
How long are warehouse leases?
Commonly 3–10 years for whole buildings; smaller “flex” units may offer 1–3 years. Short-term needs are usually cheaper through public warehousing or a 3PL.
Do I need a commercial real-estate broker?
Not required, but tenant-rep brokers know local rents and are usually paid by the landlord. Read anything you sign carefully.
Related guides
- How Much Does Warehouse Space Cost? 2026 Estimates per Pallet and per Square Foot
- How to Choose a 3PL Warehouse: 12 Questions to Ask Before You Sign
- Bonded Warehouses vs Foreign-Trade Zones (FTZ): What Importers Need to Know
This guide is general information, not legal advice. Rules and rates change — confirm permits with your city or county and get written quotes before you buy.