How much does warehouse storage cost in the UK?
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Basic warehouse storage cost in the UK can be around £9 to £15 per square foot, annually.
Warehousing costs can vary depending on what they include. This could be things like the rent price, labour, equipment, utilities, insurance and maintenance.
For businesses needing to manage stock and inventory, it can sometimes work out more cost-effective to get a full 3PL (third-party logistics) provider rather than just warehouse storage.
This means that storage, inventory management and shipping are all handled by one company, making it much easier to manage.
At SFI, we have over 30 years’ of experience handling logistics - from warehouse storage to order fulfilment, delivery, and more.
Get in touch today for a bespoke quote.
How much is warehouse storage in the UK?
Warehouse storage costs in the UK are usually based on square footage. The more square feet you need for storage, the more you’ll pay.
Across the UK, average storage costs are around:
- £25-£40 for 25 square feet
- £40-£60 for 50 square feet
- £60-£90 for 100 square feet
- £85-£120 for 150 square feet.
The key when finding the right warehousing company for your business needs is making sure you have enough space and the right conditions (e.g. temperature-controlled).
What do warehouse storage costs include?
Warehouse storage costs may include different services and fees depending on the company.
Typically, warehouse storage costs will include:
Rent
The main cost for warehouse storage is the rent or lease payment. This is usually paid on a monthly basis. Rent costs vary depending on the size of the warehouse and also the location. For example, central locations such as London will have higher rent costs.
Utilities
The cost of utilities is usually included in the warehouse storage cost, including electricity, water and heating. Services like climate-controlled storage are often an extra, so it’s always worth checking with the storage facility if that’s something you need.
Insurance
Some warehouse facilities include insurance as a given, while others may charge an additional fee or require you to contract your own insurance policy.
Security
Most warehouses will include security features such as round-the-clock CCTV, security alarms and personnel, to make sure your items are always safe.
Taxes
In the UK, taxes are usually included in the cost of warehouse storage. These might be local taxes and standard VAT.
Maintenance
General maintenance and cleaning of the facilities will usually be included in warehouse storage costs.
How much is warehouse storage compared to 3PL?
There’s a big difference between logistics and warehouse storage when it comes to price. Traditional warehouse storage involves fixed costs by square foot whereas 3PL storage is charged per pallet or bin.
3PL storage in the UK can work out at around £1.50 - £3 per pallet, per week whereas private warehouse space could be up to £15 per square foot, per year.
Unlike 3PL, warehouse storage costs don’t typically include labour or additional services.
Warehouse storage costs
Warehouse storage rent is based on the square footage and location of the warehouse, with fixed monthly costs. Regardless of your inventory volume, you’ll need to pay the same all year round.
3PL storage costs
Many 3PL providers use flexible pricing based on inventory and order volume. This flexibility allows businesses to scale up or down during busy seasons and quieter periods, without paying for more space or services than they need. Prices could be as low as £1.50 per pallet, per week.
The reason 3PL tends to be more expensive is that it offers far more than simple storage. Alongside warehousing space, 3PL providers usually include inventory management services, such as on-site staff, technology that tracks stock levels in real time, and support with distribution and shipping.
Using 3PL, rather than renting a warehouse, can help businesses avoid high, fixed warehouse costs and help companies operate more efficiently by having all logistics managed in one place.
Does using a 3PL reduce warehouse storage costs?
Using a 3PL can help reduce warehousing costs, thanks to:
All-inclusive prices
Rather than renting designated warehouse storage and then having to pay for logistics on top, 3PL combines all of it. With 3PL you pay for warehouse space, on-site staff and inventory technology, getting more for your money.
This is great for companies looking to budget in the long-term and makes overall operations much more cost-effective.
Professional logistics personnel
When you rent a warehouse, you’re just paying for storage space. With 3PL, your costs include a team of professional logistics staff who are well trained to manage your inventory - from quality control checks to preparing order fulfilment.
They have access to specific training as well as key processes, software and equipment so you don’t have to look elsewhere or pay to train warehouse staff.
Scalability
Warehouse storage lacks flexibility - you pay a fixed price for the amount of space per month regardless of your inventory volume.
3PL is much more flexible, with services that adapt depending on your inventory needs, so that it can grow with you.
Delivery and distribution
When you rent warehouse storage, you need to look for a separate provider to help with distribution, shipping and delivery.
With 3PL, everything is in one place. 3PL companies have their own network of carriers so that your orders can be distributed on time and at the most cost-efficient prices.
Minimise payments
Rather than paying for warehouse storage and then having to contract different providers for distribution, inventory management and any other services, outsourcing to a 3PL means that you’re just making one investment with everything covered.
Company growth
With logistics outsourced to a professional 3PL company, it frees up company time and resources to focus on sales, marketing and customer service so that you can grow your business and increase profit.
All-inclusive logistics with SFI
Renting warehouse storage with no inventory management included might not be the best decision for your business. While it might give you the space you need, you’re going to have to spend precious time and resources managing inventory yourself or coordinating multiple service providers for storage, handling and shipping.
Choosing a warehousing company or 3PL partner that handles everything in one place can be more cost-efficient and much more helpful when it comes to long-term budgeting, scaling your business and keeping clients satisfied.
If you’re looking for a warehouse storage that can do it all, get in touch today. At SFI, we have over 30 years of experience helping companies with flexible warehouse storage, inventory management and logistics.
Contact us today!