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Warehouse dilapidations cost more per project than office ones, but there is no single price per square foot. The bill depends on what was fitted, what has been damaged and what your lease says you must put back. This guide explains the main cost drivers, how to read a quote and where tenants usually save money. If you want a number for your own unit, send us your lease and we will scope it.
Why there is no one-size price
Two units of the same size can have very different bills. One may have a clean slab, no racking and a sound roof. The other may have 400 pallet bays bolted to the floor, a mezzanine, damaged dock doors and a leaking roof. Any figure quoted per square foot without a survey is a rough guide at best. [Add your own range here once you have priced the live job, with the basis, for example: Typical works on a standard 10,000 sq ft unit with racking and floor repairs: £40,000 to £110,000″.
The main cost drivers
- Unit size and eaves height. Bigger and taller units need more labour, access equipment and time.
- Racking and mezzanines. The number of bays, beam levels and fixings, and whether a structural engineer must sign off removal.
- Floor condition. Anchor-hole density, cracks, spalling, coatings and staining decide the repair method and cost.
- Roof, cladding and rooflights. Often the largest single item. A landlord’s claim for roof repairs can run to many times the rest of the schedule.
- Dock and door equipment. Dock levellers, shelters, roller shutters and sectional doors are claimed for damage and for missing or inoperable parts.
- M&E and fire safety. Lighting, heaters, extraction, sprinklers and fire alarm, and whether the lease requires test certificates.
- Offices and welfare. The extent of fit-out to strip back or reinstate.
- Yard and externals. Line marking, signage, fencing, barriers and surface repairs.
- Access and waste. Restricted delivery hours, limited dock access, and the volume and type of waste.
- Lease wording. Whether you must remove every alteration or return the unit as you found it.
Typical cost components
| Item | What decides the price |
|---|---|
| Racking removal | Number of bays, height, fixing type, scrap value |
| Mezzanine removal | Size, structure, engineer sign-off, floor make-good |
| Floor repairs | Area, defect type, repair material |
| Dock and door repairs | Number of units, repair or replacement |
| Roof and cladding | Extent of damage, access, specialist subcontractors |
| M&E make-good and certificates | Systems fitted, testing required |
| Offices and welfare strip-out | Area and finishes |
| Cleaning and waste | Volume, hazardous items, licensed carrier |
Cost of doing the works versus a settlement
You can often choose between doing the works and paying the landlord a cash settlement. The landlord’s schedule is a claim, not a quote, and it may include items you could do for less, plus professional fees. It is worth getting a contractor’s price to compare. Under section 18 of the Landlord and Tenant Act 1927, damages for disrepair are capped at the loss in value of the landlord’s interest, which can reduce a claim if the landlord plans to redevelop or refurbish the unit. Take advice on your own lease. Read more in our settlement vs doing the works guide.
How to read a warehouse dilapidations quote
- It should list each item separately, with quantities and units.
- Provisional sums should be flagged and explained.
- It should say what is excluded, for example roof works or asbestos.
- It should state the programme and the access it assumes.
- It should name who disposes of the waste and provide transfer notes.
How to reduce the bill
- Start early. Rushed works cost more and leave less time to negotiate.
- Read the lease first. You may not owe everything on the schedule.
- Get a pre-exit survey 6 to 12 months out.
- Agree scope with the landlord’s surveyor before you start.
- Do the works yourself where it is cheaper than the claim.
- Sell racking that is in good condition.
- Keep your starting-condition records so you are not paying for old damage.
Get a price for your unit
We survey, price and carry out warehouse lease-exit works across London and the South East. Request a scope and quote. For how pricing works on offices, see our office dilapidations cost guide.