Costco plans $7.5 billion of spending in fiscal 2027 to open 33 warehouses
Costco owns the land under about 80% of its 939 warehouses, and its CFO says new buildings account for most of the higher budget.
By Katia Clara · · 3 min read
Costco expects to spend about $7.5 billion on capital projects in fiscal 2027, up from $6.4 billion in the year that ended Aug. 30 [1][2]. CEO Ron Vachris said the company plans to open 33 warehouses, five of them relocations, including new U.S. markets such as Buffalo, New York, and Lawrence, Kansas [2].
CFO Gary Millerchip said the increase is “predominantly due to a growth in the pipeline of new warehouses” [2]. We calculate the jump at about $1.1 billion, or 17% [1][2].
Costco opened 25 net new warehouses last year, 18 of them in the U.S.
Costco opened 28 warehouses in fiscal 2026, including three relocations, for 25 net new: 18 in the U.S., five in Canada and two in other countries [3]. It ended the year with 939, including 647 in the U.S. and Puerto Rico [1].
For fiscal 2027, Vachris listed four openings in Europe, five in Canada and one in Mexico [2]. Millerchip said Costco sees “a path for the next 5 to 10 years” of targeting about 30 new warehouses a year [2].
Net sales rose 10.1% to $297.2 billion for the year, and U.S. comparable sales grew 8.2% [1].
Costco owns the land under about 80% of its warehouses
Of its 939 warehouses, Costco owns both land and building at 755, and at 136 more it owns the building on leased land [3]. By our math, the remaining 48 are fully leased and owned sites make up about 80% of the total. The average warehouse is about 148,000 square feet [3].
| Arrangement | Warehouses | Share of total |
|---|---|---|
| Owns land and building | 755 | 80% |
| Owns building on leased land | 136 | 14% |
| Leases land and building | 48 | 5% |
| Total | 939 | 100% |
How to use this
For landowners and land brokers
- Offer Costco a sale first and a ground lease as a second option. It owns the land at 755 of 939 warehouses [3], and its 136 ground leases [3] show it will build on land it does not own when the site is right.
- Show that a site can fit a building of about 148,000 square feet [3] plus parking and truck access before you approach Costco’s real estate team, and bring traffic counts for the nearest interchange.
For shopping center owners near new Costco sites
- Check your tenants’ leases for co-tenancy and exclusive-use clauses before a Costco opens nearby, and set renewal rents in markets like Buffalo and Lawrence with the opening dates in mind [2].
- Market nearby pads to restaurants and service tenants that could benefit from Costco’s traffic. U.S. comparable sales at Costco grew 8.2% last year [1], and a prospective tenant can weigh that number when it compares your site with others.
For contractors and suppliers
- Bid early in the markets Costco has named. Millerchip said most of the $1.1 billion increase goes to new warehouses [2], so site work, paving and steel subcontractors near announced locations could see more bid requests in 2027.
This is market commentary, not investment advice.
Sources
- [1]Costco Wholesale Corporation, Costco Wholesale Corporation reports fourth quarter and fiscal year 2026 operating results, Sep 24, 2026.
- [2]Webull News, Costco (COST) Q4 2026 earnings call transcript, Sep 24, 2026.
- [3]Costco Wholesale Corporation, Costco Wholesale Corporation annual report for fiscal 2026 (SEC Form 10-K), Oct 2026.
