In the UK, the cost of warehouse space is among the highest anywhere in the world. So, it’s perhaps no surprise that the cost of relocating a warehouse doesn’t come cheap.
For larger distribution centres, the average warehouse relocation cost is in the region of six figures.
At Logical Storage Solutions, we help warehouses to maximise their space usage, whether this is during the move into a new warehouse, or by exploring other options to avoid the cost of relocation altogether.
Keep reading to discover what it costs to relocate a warehouse to get a better idea of what's involved.
How Much Does Relocating A Warehouse Cost?
According to our research, the average cost of relocating a warehouse is between £690 and £901 per square metre (an average of £796) for a small warehouse.
For larger distribution centres, the average cost of relocating is between £760 to £1076 per square metre (an average of £918).
These figures are based on published costs available on various storage and trade websites. However, they don’t take into account the location of your new warehouse, which will also impact the cost. For instance, Savills reports that London has the highest cost of warehouse space anywhere in the world, coming in at $49.67 (£36.83) per square foot.
In contrast, the average cost to add a mezzanine to a warehouse is between £70 and £200 per square metre. With many other space saving measures available for warehouses, redesigning your existing facility often works out far cheaper in the long run.
Warehouse Relocation Cost Breakdown
Warehouse relocation costs must factor in all of the aspects needed to transport all stock and equipment to the new building.
Even for smaller distribution centres, relocating a warehouse is a huge undertaking, which is why the expenses soon mount up.
We’ve looked at average industry figures for all of the steps involved to get a better idea of the costs. The following costs are indicative ranges based on real commercial moving practices. However, the actual costs depend on the size, distance, infrastructure and complexity of your warehouse operations.
Stock Transport & Handling
Moving all your stock from one location to another can be very costly.
The exact costs will depend on the:
- Volume/weight of stock
- Distance between old and new premises
- Special handling (fragile, perishable or hazardous items)
- Labour to pack, load, transport and unload
You’ll usually pay for lorry time, specialist labour and equipment like forklifts or pallet jacks.
Average price range: £10,000-£60,000
Specialist Movers & Project Management
Most warehouse relocations require specialist commercial warehouse relocation services to undertake the actual removal process.
Their fees will include:
- Carrying out site surveys and planning
- Dismantling and reassembling racking
- Packing and securing goods
- Providing project management to minimise disruption
These specialist services cost more than domestic removal firms because of the scale, equipment and insurance involved.
Average price range: £20,000-£100,000
Racking/Equipment Assembly
Warehouses contain a vast array of heavy racking, conveyors and pallets. These must be safely taken down and set up again in the new space. Often, this is handled by the movers or a separate specialist contractor.
Removing and setting up warehouse equipment in a new location will involve:
- Dismantling shelving and mezzanine
- Reassembly at the new location
- Storage of loose parts if off-scheduling
Average price range: £5,000-£40,000
Packing Materials & Labour
Labelling, secure packing, shrink wrap, protective crates and manual labour all add up.
Tasks can include:
- Pallet wrapping
- Shelving component crating
- Equipment protection
- Inventory tagging
Even palletised stock can require professional handling to avoid damage.
Average price range: £3,000-£15,000
Utilities & IT reconnection
Shutting down the old site and setting up utilities at the new site involves:
- Electricity and gas final bills
- Sewer and water termination/reactivation
- IT infrastructure & phone systems
- Fire alarm and security systems setup
- Renewing permits or compliance certificates
Average price range: £2,000-£15,000
Premises Dilapidations & Restorations
Your existing warehouse lease may require you to return the building in a specific condition. A dilapidation survey is usually required to determine any works required.
Common warehouse dilapidations include:
- Patch and paint the walls
- Remove fixtures
- Clean thoroughly before handover
However, the required work can be more significant, especially in older leases with restoration clauses.
Average price range: £5,000-£30,000
New Fit-Out
Once in the new space, you’ll often need to pay for all of the building and storage features needed to make the warehouse fit the needs of your business.
Warehouse fit-outs can require the likes of:
- Racking, shelving and pallet systems
- Mezzanine floors
- Office partitions
- Safety infrastructure (barriers, non-slip flooring and alarms)
- Lighting and electrical upgrades
- Heating, ventilation, IT and telecoms
All of the above is often more expensive than the relocation itself because you’re basically equipping a fresh facility.
Average price range: £30,000-£150,000
Insurance & Contingency
Moving the contents of a warehouse will require specialist insurance. While warehouse removal companies usually include basic cover, additional policies may be needed to cover high value stock or equipment.
On a basic level, cover is needed for things such as:
- Stock in transit
- Machinery relocation
- Third-party and liability insurance
Aside from insurance costs, a warehouse relocation also requires contingency in the budget to cover unexpected costs. For instance, project delays, structural surprises at the new site, additional labour requirements or admin issues.
Average price range: 10%-15% of total spend
Alternatives To Relocating A Warehouse - Cost Effective & Space Maximising Solutions
If you are surprised by the average warehouse relocation cost, the good news is that many other options exist to avoid the expensive, not to mention the hassle involved.
One of the most common reasons for relocating a warehouse is due to a lack of space. This is closely followed by a need to reduce costs. However, reimaging a warehouse in terms of its storage solutions and overall use of space can solve both of these challenges and more.
Warehouse Layout Redesign
Before you relocate your warehouse, have you had a quick look at its layout first? Reviewing a warehouse layout is one of the quickest and best ways to uncover inefficiencies.
Cost-effective fixes to a warehouse include:
- Repositioning fast-moving stock
- Reorganising pick paths
- Consolidating low-demand items
- Improving goods-in / goods-out flow
Result: A warehouse which is optimised for the current needs of your business, while also supporting future expansion. From our experience supporting warehouses across the UK, even minor layout changes can free up significant space!
View our warehouse refurbishment services
Vertical Space Optimisation
It’s very common in warehouses for vertical space (floor to ceiling) to be underused. Often, this is the result of the business expanding over time, meaning the original layout no longer caters to current demand.
Improvements may include:
- Automated vertical lift modules (VLMs)
- Higher racking (if structurally suitable)
- Multi-tier shelving systems
- Result: Maximises cubic capacity rather than just square footage.
View our warehouse shelving solutions
High-Density Racking Systems
One of the best ways to drastically improve storage capacity in a warehouse (and avoid having to relocate!) is to upgrade to more efficient storage systems. Doing so can instantly improve storage capacity in a way that is both efficient and cost-effective.
Options include:
- Narrow aisle racking
- Very narrow aisle (VNA) systems
- Double-deep racking
- Mobile racking systems
Result: More pallet positions within the same floor area.
View our very narrow aisle pallet racking and mobile racking solutions.
Inventory Rationalisation
Sometimes, taking a second look at your warehouse inventory can also reveal inefficiencies, such as slow moving or excess stock.
Strategies such as SKU analysis, improved forecasting, just-in-time inventory practices and discontinuing underperforming product lines are all options to explore.
Reducing inventory can also eliminate the need for expansion entirely. That said, this needs to be on a case-by-case basis, since a high level of inventory is often required to support the growth of the business, particularly for ecommerce businesses which have a fast turnover of products.
When Warehouse Relocation Makes Sense
- Your current location is too far from motorways and other important transport links, which is increasing costs and delays
- Dilapidation liabilities are high
- The landlord restricts alterations (i.e. mezzanines or automation adaptations)
- Forecasted growth exceeds 3-5 year capacity
- You’re consolidating multiple sites into one hub
- Infrastructure limitations at the current site
If a warehouse relocation is on the cards for your business, Logical Storage Solutions can help your business make the most of its new warehouse facility! On our website, you’ll find details of all of our warehouse storage services.
We also recommend taking a look at our case studies to see our work in action.
Having Warehouse Space Challenges? Talk To Our Experts Today
Whether relocating your warehouse or staying put is the best option for your business, ensuring your available space is being put to the best use remains a priority.
Logical Storage Solutions is the UK’s leading provider of warehouse storage solutions. As a result, our team is best placed to help solve any challenges within your existing setup.
As noted above, our services span warehouse refurbishments through to specialised storage solutions such as very narrow aisle pallet racking.
So, if you need any help maximising space and efficiency in your warehouse, please get in touch for a free quote.
Or, to speak with our team directly, please call 0845 689 1300.