Cost benchmarking: industrial & logistics build costs across the Midlands

The Midlands remains the UK’s most active industrial and logistics development market. This cost overview sets out the current build cost parameters for developers and occupiers planning schemes in the region.

The UK Midlands has consistently led UK industrial take-up and development activity. With access to the M1, M6, M42, M5 and A14 corridors, and proximity to 90% of the UK population within a four-hour drive time, the region continues to attract occupiers from e-commerce, automotive, food and drink, pharmaceuticals, and third-party logistics. Understanding the cost parameters for development in this market is increasingly important as land values, build costs, and occupier expectations have all moved materially.

Current build cost parameters (2025/26)

The following ranges are indicative, based on current market evidence and BCIS data, and should be verified against a specific scheme’s specification and location:

Standard distribution warehouse: £71-£105 psqft. This range covers a typical portal frame specification with standard dock levellers, welfare facilities, and basic fit-out. The lower end reflects straightforward schemes on flat, unconstrained land; the upper end reflects increased specification, complex ground conditions, or constrained sites.

High-specification logistics: £121-£167 psqft. Purpose-built facilities for high-bay automation, cross-docking or sortation, where floor loading, power supply and building height all move beyond standard specification.

Temperature-controlled and food & drink: £167-£230 psqft, reflecting the additional M&E requirements, floor slab specification, and cladding performance needed for controlled-environment storage.

Infrastructure and external works: Typically 15–25% of the base-build cost, covering roads, drainage, hardstanding, gatehouse and perimeter security. On larger multi-unit schemes, infrastructure can represent a disproportionate share of the development cost, particularly where new highway junctions or significant earthworks are required.

The factors that move industrial & logistics build costs

Ground conditions. The Midlands has significant areas of legacy industrial land, former colliery ground, and made ground, all of which can generate material cost uplift over a standard greenfield assumption. A properly scoped ground investigation at planning stage (not just a desk study!) is essential for cost plan reliability.

Sustainability specification. BREEAM Excellent accreditation is increasingly required by institutional investors and large occupiers. The Pets at Home distribution centre at Stafford, where Wakemans provided employer’s agent and cost management services, achieved BREEAM Excellent – incorporating solar panels, rainwater harvesting, 30 EV charging points and extensive ecology works. The premium for that level of sustainability specification is real but manageable when designed in from the outset.

Labour and subcontractor costs. BCIS labour costs rose 7.1% year-on-year in Q2 2025. The Midlands market is competitive for specialist groundwork, cladding, and M&E trades – programmes should allow adequate lead time for subcontractor procurement and avoid peak demand periods where possible.

Cost benchmarks are a starting point, not an answer. Every scheme has site-specific factors that move the number — and the earlier you understand them, the better placed you are to manage them.

What Wakemans brings to industrial & logistics development

Our cost management team has provided cost consultancy across some of the Midlands’ most significant industrial schemes in recent years, including the Amazon Redditch Gateway sorting facility, the Pets at Home distribution centre (£30m, 670,000 sq ft), and multiple Indurent phases across the region. That depth of market experience means our benchmarks are built from real projects, not published averages alone.

For developers and occupiers planning Midlands industrial schemes in the coming years, we are available to provide independent cost benchmarking, procurement advice, and full cost management services from feasibility through to final account. Contact Wakemans’ cost management team for independent cost benchmarking on your industrial or logistics scheme at wakemans.com/expertise/cost-management