The easiest method is to calculate cost increases based on an index. We are often asked how to adapt historical data to current budget expectations. Thank you for your question – it is a very good one. These are always a part of the initial programming discussions and the Architect will play a huge role in helping to define the ranges of cost to expect for the project. It is increasingly important to understand the cost drivers for any commercial project and how building type, construction type and location can all be huge variables that will drive your cost per square foot. Expenses for kitchen equipment also drive this building type to a median of near $200 per square foot, the most expensive of the four building types in this discussion. The median cost for this commercial building type hovers around $100 per square foot.īecause of the new trends in fast food being more boutique and less assembly line, the cost for a typical fast food restaurant is on the rise. Not surprisingly, New York tops the charts for most expensive city to build in for all of these building types.Ĭonvenience stores are generally less expensive to construct than the other building types because of their simpler nature.

The median for this type of construction is between $160 and $170 per square foot. Data source: Reed Construction Data – RSMeans/Charts: Reed Construction Data – CanaDataĪs you can see from the range of cost per square foot, location alone can represent as much as 70% of the cost driver for a single story office building. All graph images are courtesy of RSMeans Construction Cost Data. Note, that not all types of construction cost the same per square foot, and even more importantly, the cost of construction per square foot varies significantly with location.īelow are four different types of commercial construction and the varying cost per square foot to expect for each in different regions. We subscribe to RSMeans’, researchers of construction cost data nationwide, and have come across some important current data on the cost of commercial construction for four different commercial project types as a function of their location. Local economy is a very important factor in construction cost as well as the type of construction you intend to build. However, there is some guidance provided we know where you are located and what kind of building you are looking to build. We get this question all the time: How much does it cost to build a commercial building? There is no quick answer and without more information about the project and its location, is essentially akin to asking how many angels can dance on the head of a pin.

Cost of building a shopping center