The warehouse construction is vital in the current, ever-growing commercial industry. E-commerce evolution, Third-party logistics and industry growth are acting as catalysts in the increasing warehouse construction. But many investors are confused between prefabricated (pre-engineered) and conventional RCC (Reinforced Cement Concrete) structures.
Read this blog to understand the major difference between them and make an informed investment decision based on their functionality, speed, cost, location, and long-term performance.
What is a Warehouse?
A warehouse is a large commercial building or facility used for storing goods, raw materials, or finished products before they are distributed, sold, or used in production. Initially, it was just developed for logistics and industrial needs; today, warehouses are critical assets across retail, e-commerce, manufacturing, pharmaceuticals, and third-party logistics. The main purposes of warehouses are storage, inventory management (oversight and control of the flow of goods), and distribution.
Key Components of a Warehouse:
- Structural Frame: Frame made of columns, beams, and trusses.
- Flooring System: Heavy-duty concrete slabs, designed for high load-bearing capacity.
- Envelope: Roofing, wall cladding, insulation, and weatherproofing elements.
- Access Infrastructure: Loading docks, ramp, overhead doors, and vehicle circulation zones.
- Internal Systems: Lighting, fire protection, HVAC, material handling equipment, and IT for warehouse management.
Earning Potential for a Warehouse
The earning streams for a warehouse owner include
- Rental Income: Providing warehouse space for rent to businesses or 3PL providers for storage.
- Value-added services: Space can be helpful in increasing revenue by offering value-added services, such as packing, shipping, kitting, and distribution, for e-commerce or manufacturing.
- Specialized storage: Cold storage or hazardous goods storage can attract higher-paying clients.
- Higher returns in prime locations: Warehouses near highways, ports, or industrial hubs can command premium rents.
- Vacant space utilization: Vacant space can be used for short-term logistics, repair shops, indoor sports, or flexible commercial ventures.
- Long-term leases: If the owner holds long-term rental contracts or develops multi-client facilities, they can yield competitive returns.
What is a Prefabricated Warehouse?
A prefabricated warehouse is a type of storage facility built with prefabricated parts that are assembled on-site after being manufactured off-site. Pre-fabricated warehouses are also called pre-fabricated steel frame warehouses. These structures are mainly built of steel components customised to particular technical drawings. The installation procedure involves three major stages: designing, processing steel components, and installing at the construction site. Compared to traditional buildings, these warehouses can be constructed more quickly, more affordably, and with greater design flexibility.
What is RCC Warehouse?
An RCC (Reinforced Cement Concrete) warehouse is a storage facility built using concrete reinforced with steel bars or mesh, giving it high strength, durability, and load-bearing capacity. These warehouses are ideal for long-term use as they offer excellent resistance to fire, weather, and pests, making them suitable for storing heavy goods, machinery, and valuable inventory. They require more construction time and investment compared to steel or prefabricated structures, but provide superior stability and longevity.
Read more to understand the major differences between prefabricated warehouses and RCC warehouses.
Structural Composition and Construction Methodology
Prefabricated Warehouses (PEB – Pre-Engineered Buildings)
- Material Used: Typically, construction materials are not used in this context. In prefabricated warehouses, high-strength steel sections form the core of the structure. Welded H-beams, along with cold-formed Z and C purlins, are commonly used to create the framework. These specially shaped sections provide excellent load resistance while remaining lightweight and cost-efficient, making them ideal for large-span industrial applications.
- Fabrication: As steel members are vital here. These steel sections are produced off-site in advance. This involves automated facilities, using CNC machining, precision robotic welding, and digital quality controls. This ensures exceptional accuracy, repeatability, and considerable reduction in human error. It also includes the integration of BIM (Building Information Modelling), robotics, and elements of 3D printing technology for more complex or specified parts.
- Installation: At the construction site, steel components are assembled through high-strength bolted connections, without any wet processes. This way, you can eliminate typical and complicated, time-consuming construction. This also takes considerably less time than the RCC construction method.
- Foundation: As these structures offer relatively low dead load, shallow spread footings or pad foundations are sufficient for the foundation. Anchor bolts are pre-set for precise fitment of the base plates, reducing site labour and total timelines. However, larger or taller buildings may demand a suitable type of deeper footings. The foundation design always depends on soil and climate conditions.
- Roofing: As a standard, high-performance Galvalume (zinc-aluminium coated) sheeting will be used for roofing. It provides superior corrosion resistance and longevity. To achieve energy efficiency, sandwich panels (with polyurethane or mineral wool cores) are often used. This way, you can enhance thermal performance and reduce operational energy costs.
- Floor: Floor slabs are typically industrial-grade, utilising vacuum-dewatered flooring (VDF) techniques for exceptional surface hardness, wear resistance, and minimal dust. The use of expansion joints ensures dimensional stability under heavy warehouse traffic.
Reinforced Cement Concrete (RCC) Warehouses
- Material Used: This method involves cast-in-situ concrete, reinforced with high-yield strength deformed bars (commonly Fe500/Fe550 TMT steel). This combination provides high compressive and tensile strength, making it resilient for heavy-duty industrial use.
- Fabrication: This complete construction involves an on-site procedure. The complete procedure, including bending steel rods, setting up formwork, pouring concrete, and curing, depends on labourers and takes considerable time. Since all these steps will be executed outdoors, it is weather-dependent. Skilled workers and strict supervision are needed to ensure good quality throughout each stage.
- Foundation: Since RCC (Reinforced Cement Concrete) is very heavy and strong, the foundation must be designed to carry this weight safely. Common types of foundations include isolated footings or raft foundations. The size and type of foundation depend on the soil strength and the needs of the project. A properly designed foundation keeps the building stable, even in areas with weak soil or during earthquakes.
- Roofing: For the RCC warehouse structures, two types of roof systems are very common- flat RCC slabs and truss-supported roofs. Flat RCC slabs are best for robust fire and vibration resistance. Truss-supported roofs clad with asbestos-cement or metal sheeting.
- Floor: The warehouse floor comprises a thick, high-spec industrial concrete slab incorporating steel reinforcements and precise expansion joints. These prevent destructive cracking from temperature change, shrinkage, and heavy vehicular loading typical in logistics centers.
Prefab has a lighter dead load and faster assembly, but may not suit multi-storeyed storage without hybrid RCC cores. RCC allows for long-span slabs but takes longer construction time due to curing and formwork cycles.
Construction Time and Project Delivery
| Parameter | Prefabricated (PEB) | RCC Construction |
| Design to Site Mobilisation | 2–4 weeks | 4–6 weeks |
| Construction Time (50,000 sq.ft) | 3–5 months (12–20 weeks) | 8–10 months (32–40 weeks) |
| Commissioning & Handover | ~6 months total | 10–12 months total |
Strategic Insight:
Time is money in logistics. Prefabrication typically saves 40–50% of the construction schedule—a critical strategic advantage allowing for faster lease-up, quicker Go-Live for anchor tenants (e.g., e-commerce, FMCG, 3PL), and expedited revenue cycles.
Prefabricated vs RCC Warehouses: Cost Comparison
| Component | Prefab (PEB)(₹/sq.ft) | RCC Warehouse(₹/sq.ft) |
| Civil Works(Foundation + Floor) | 400–550 | 575–750 |
| Superstructure | 750–1,050 (steel) | 900–1,200 (concrete mix + rebars/steel) |
| Roofing & Cladding | 320–500 | 350–600 |
| Total Construction Cost | ₹1,450–₹2,100 | ₹1,825–₹2,550 |
Notes:
- Prefab’s cost is influenced by global steel prices
- RCC costs vary by location, sand, and aggregates availability, and labour inflation
Flexibility, Scalability & Customisation
Prefabricated:
Modern PEB warehouses are specially designed to adopt business agility. As this structure involves a modular, bolted framework, it can easily allow fast, cost-effective expansion. You only need to add new structural bays at the ends or sides, without major downtime, pause or re-engineering.
- Typically, prefabricated steel systems deliver column-free interiors with clear spans of 30–50 meters.
- Advanced designs (space frames, portal trusses) can even reach up to 75–80 meters for specialised uses.
This makes PEBs a top choice for facilities requiring robotised storage, high-bay racking, or automated conveyors. You can easily include customised mezzanines and dock doors. Therefore, PEBs are the leading “Build-to-Suit” configuration for fast-growing e-commerce and logistics players.
RCC Warehouses:
RCC warehouses can provide brilliant structural stability, but they may limit future development options. It can be difficult to update the layout or size in the future, consuming considerable time and cost. You can increase the space vertically by about G+1 or G+2 for storage through RCC construction. Since the RCC structure involves mass in the walls and roof, you can reduce energy costs by maintaining stable temperature and acoustic standards.
Lifecycle Durability, Maintenance & Energy Efficiency
| Parameter | Prefabricated (PEB/Steel) | RCC Warehouse |
| Structural Lifespan | 30–40 years (well maintained) | 50–75 years (typical) |
| Corrosion Resistance | Requires periodic inspection, painting, and re-galvanizing | Excellent (inherent in concrete) |
| Energy Efficiency | High with insulated sandwich panels (PUF/Mineral Wool) | High due to thermal mass; basic RCC needs insulation for best performance |
| Maintenance | Moderate—paint touch-up, bolt/tightening, periodic facade/roof checks (3–5 yrs cycle) | Low (routine building checks); less frequent, primarily related to joints & waterproofing |
Strategic Verdict:
- RCC wins for long-term durability and minimal maintenance
- PEBs excel in locations with seismic risk due to flexibility and ductility
Regulatory Approvals and Fire Compliance
Fire NOC and Fire Resistance
- Prefabricated (PEB/Steel) Warehouses require additional measures to meet the necessary fire resistance duration. Although steel is non-combustible, it loses strength at high temperatures; hence, intumescent paint (a coating that swells up when heated, protecting the material underneath) or fire cladding is mandatory to achieve 60–120 minutes fire rating, as per local Fire Department norms and the National Building Code (NBC 2016). NOC issuance for PEBs depends on proof of these fire protection systems.
- RCC Warehouses are naturally fire-resistant; reinforced concrete elements generally achieve fire ratings of 2–4 hours or more, complying with strict fire NOC requirements for storage buildings. These ratings are recognised in building codes and mandated for high-hazard occupancies, ensuring robust protection and easier approvals for goods with significant fire load.
Green Building Compliance
When compared to RCC structures, PEB structures are widely recognised as green building solutions. It is mainly due to their high content of recyclable steel, lower on-site water consumption, and minimal construction waste compared to conventional RCC.
Major PEB manufacturers align their designs with LEED and national green standards, streamlining certification and environmental compliance for logistics investors.
Regulatory Codes (Mandatory for Both)
- NBC 2016: National standard for fire safety (Part 4), construction, layout, exits, and fire protection systems for storage buildings, compliance is compulsory for all major warehouses.
- IS 875: Governs design loads, including wind and seismic loads, a fundamental safety requirement in both RCC and steel warehouses.
- IS 800: The principal code for the design and erection of structural steel buildings, ensuring structural reliability and safety in all PEB/steel warehouses.
Logistics Industry Perspective: Use-Case Suitability
| Warehouse Use-Case | Preferred Construction Type | Justification |
| Fulfilment Centre (e-commerce) | Prefabricated (PEB/Steel) | Prioritizes fast build, high-clear height, scalable layouts for frequent SKU churn and conveyor automation. Standard for leading e-commerce and 3PL expansion. |
| Cold Storage | RCC (with insulated panel hybrid) | RCC offers superior airtightness and thermal inertia; hybrid models integrate advanced insulated panels for efficient temperature control, critical for perishables. |
| Multi-Tier Warehouse | RCC | Structural stiffness, fire safety, and regulatory mandates make RCC the go-to for multi-story/automated storage; steel is feasible but less common for >2 tiers. |
| Transit Hub | Prefab (PEB/Steel) | Fast project cycles, flexible expansion, and low cost are typical for truck terminals, cross-dock, and short-term storage users. |
| FMCG Sorting Facility | Prefab (PEB/Steel) | PEBs provide open spans and fast fit-out for sorting lines, automation, and high-velocity handling. |
| Pharma Storage | RCC with temperature control (plus hybrid for specialized zones) | Regulatory GMP-compliance, temperature/humidity precision, and security requirements best addressed with robust RCC and insulated inserts. |
Strategic Considerations for Developers & Investors
- Land Constraints: RCC warehouses are ideal where land is scarce, as they allow for higher FSI utilisation and multi-storey development, making them suitable for urban and high land value markets (Knight Frank 2025).
- Return on Investment (ROI): Prefabricated (PEB) warehouses offer faster construction and early rental income, thereby accelerating ROI, which is particularly key in time-sensitive, demand-driven leasing environments (JLL, 2025).
- ESG Compliance: PEBs also align with ESG goals, thanks to lower carbon emissions, reduced water use, and easier green certification (GRIHA/IGBC).
- Resale / Exit Strategy: For the exit strategy, RCC warehouses remain more universally accepted by institutional investors due to their robustness and perceived longevity.
Prefabricated Warehouses vs RCC Construction
| Factor | Prefabricated Warehouse (PEB/Steel) | RCC Construction |
| Speed of Construction | 40–60% faster; typical 50,000 sq.ft delivered in 3–5 months. Simultaneous foundation and factory fabrication. | Slower; 8–10 months for 50,000 sq.ft. Sequential processes, dependent on curing and labor availability. |
| Foundation | Shallow, lighter—less concrete and rebar required since steel is lighter. | Deeper, heavier—greater concrete and steel consumption for heavy mass. |
| Customization | Very high—easy design tweaks, future expansion (add bays), clear spans 30–50+ m for open, column-free interiors. Easily adapts to automation/modern logistics. | Limited—expansion difficult post-completion; multistorey and specialized uses (heavy machines, permanent office space) are strengths. |
| Material Waste | Minimal—off-site precision manufacturing reduces site debris and wastage. | Higher—on-site formwork, cutting, and labor-intensive processes mean more waste. |
| Lifespan & Durability | 30–40 years with routine painting/maintenance. Fire and corrosion protection required. | 50–60 years or more; better inherent fire rating, with heavier long-term performance. |
| Thermal Performance | Needs insulated panels for efficient temperature control. | RCC offers superior natural thermal mass; well-suited for cold storage or pharma. |
| Environmental Impact | Lower—uses less water, emits less carbon, and steel is recyclable. | Higher—cement manufacturing is energy-intensive, higher CO₂ footprint, and more site water required. |
| Best For | Fast-track projects, fulfillment/logistics centers, sorting hubs, scalable operations, or where future expansion/relocation is likely. | Multi-tier/vertical warehouses, permanent cold storage, locations with high FSI value or institutional hold periods. |
When to Choose a Prefabricated Warehouse?
Steel frame sheds and PEBs are ideal for warehouses and factory sheds when:
- You need fast construction.
- You require a large and open span structure without any internal columns
- Future expansion or relocation is expected
- You’re looking to reduce long-term maintenance costs
- You prefer clean construction sites with minimal debris
When to Consider an RCC Warehouse?
While RCC may not be the fastest method, it is a good choice when:
- Multistorey construction is required (G+1 or more)
- The building will include heavy machine foundations
- The structure needs to withstand harsh environments for decades
- You want permanent, office-type structures alongside warehouses
On a final note, your selection between a prefabricated and an RCC warehouse depends on your requirements, project goals, compliance norms, and long-term vision. You can also consider hybrid designs with an RCC plinth and a steel superstructure to strike a balance between speed, cost, and durability. Partnering with a top construction company like Brick & Bolt ensures that your design is backed by thorough engineering due diligence, delivering a warehouse that excels in both operational efficiency and investment-grade performance.
Hemali Patel