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3. Type of construction affects cost of warehouse space. For example, 

 warehouses of equal size, but constructed for different lengths of 

 life, can vary quite markedly in original or purchase cost. The sky- 

 lighting technique used for illumination of the display floor has a 

 similar effect on cost of warehouse space. 



4. The size or geometric layout of the warehouse or warehouses acquired 

 by an association may have resulted in construction economies. Costs 

 will be affected when measured on a per unit basis. This factor becomes 

 of considerable importance in determining average cost per square foot 

 of total facility, for the association which operates warehouses of 

 varying size. It is necessary to weigh costs with the warehouse space 

 from which they were derived in arriving at a meaningful average. 



5. Type of acquisition . Some associations operated only warehouses 

 that they planned and constructed. Others acquired facilities of 

 previous owners. Still other associations operated combinations , 

 varying in proportion, of built and purchased warehouses. Unit costs 

 may differ between the two types of acquisition and should be considered 

 in evaluating the cost of associations' warehouse facilities. 



Although not entering into figures for annual depreciation, the cost 

 of land is included in the following presentation of facility cost. 

 Land cost, in most cases, is relatively small in relation to warehouse 

 cost but is an integral part of the figure which must be considered 

 by associations when acquiring plant. 



Associations' costs for facilities and the land on which they are 

 situated ranged from 94 cents to $2.44 per square foot of warehouse 

 space. The average figure was $1.48 per square foot, and the median 

 figure $1.34 per square foot. 



One central-type association, which operated a relatively large number 

 of warehouses, furnished rather complete data on the cost of its indi- 

 vidual facilities. Warehouses were not of uniform size or type and were 

 located in several local tobacco markets. Cost of individual warehouses 

 and land ranged from 78 cents to $1.98 a square foot of warehouse space. 



The average cost was $1.25 a square foot, and the median cost $1.18 a 

 square foot. Average weighted cost was $1.35, the per unit cost of 

 individual warehouses being weighted by the warehouse space represented 

 in arriving at an average. 



No consistent relationship existed between size of warehouse and cost 

 per square foot due to other factors also affecting cost, which have 

 been noted in preceding paragraphs. 



