Cost per Square Foot of Commercial Construction by Region

Posted by Dean Dalvit • August 6, 2009 • Printer-friendly

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. However, there is some guidance provided we know where you are located and what kind of building you are looking to build. Local economy is a very important factor in construction cost as well as the type of construction you intend to build.

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. 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.

Below are four different types of commercial construction and the varying cost per square foot to expect for each in different regions. All graph images are courtesy of RSMeans Construction Cost Data. Data source: Reed Construction Data – RSMeans/Charts: Reed Construction Data – CanaData

One Story Office Building

As 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. The median for this type of construction is between $160 and $170 per square foot. Not surprisingly, New York tops the charts for most expensive city to build in for all of these building types.

Convenience Store

Convenience stores are generally less expensive to construct than the other building types because of their simpler nature. The median cost for this commercial building type hovers around $100 per square foot.

Fast Food

Because 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. 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.

Day Care

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. 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.

Tagged as: Commercial, Construction, construction cost, Restaurant

114 Responses »

Dean Dalvit
December 12, 2011 • 8:15 am

Jagtar,
Thank you for your inquiry. All of our labor and material data comes from Reed Construction Data and is specific only to territories in the United States. I do not have international construction cost data, but would be happy to help you with you project. To get the kind of information from a project, you will need a preliminary conceptual design to identify the major cost drivers like type of construction, occupancy, level of finish, etc.. Are you in need of design services for architecture or engineering?
Dean Dalvit
December 12, 2011 • 8:31 am

John,

Thanks for your inquiry. We will need a bit more information to be able to speak to the differences between Gym space and Pool space. Do you have a concept plan for the spaces involved or do you need design services at this stage? I am forwarding your question to our recreation design specialist, Matt Svoboda. He will be able to discuss the various aspects of your project along with general cost parameters. We would also be happy to discuss architectural and engineering design services for your project. Thanks!
Krishnamurthy
February 20, 2012 • 12:51 pm

Please update the chart with the prevailing-2012 cost for commercial building, Portland, OR.

Thank you.

Krishnamurthy
Dean Dalvit
February 20, 2012 • 6:20 pm

Krishnamurthy, thanks for your comment - is there a particular project type that you are interested in? I don't believe that there would be data for 2012 yet as we are not yet even a quarter into the year, but we could extrapolate other more recent data to help you with your project if you could narrow down the type of project you are inquiring about. We work on a wide variety of projects and can draw from a number of sources of information. Thanks!
Narsaimha Murthy
March 22, 2012 • 7:49 am

Dear Sir/Madam:

Which is the best source for Saudi Arabia construction cost estimation?

Thank you.

Dr.N.Murthy
MTC
Dean Dalvit
March 22, 2012 • 8:06 am

Dr Murthy,
I apologize, but I do not know what professional resources are available for construction costs outside of North America. RS Means is an excellent resource that thoroughly covers the United States and surrounding countries with similar market conditions. I would assume that there are similar resources for other regions in the world, but I am unfamiliar with any at this time. Perhaps others reading this blog could comment and provide some insight.
David Scott
April 19, 2012 • 11:25 am

What is the average cost per square foot to build refrigerated warehouse in Connecticut (southeastern)?
Dean Dalvit
April 19, 2012 • 2:35 pm

Hi David,
While I do not have RSMeans data for this project type, we have designed warehouses in Colorado and Texas that average in the ballpark of $80-$100 per square foot. Southeastern Connecticut may have a regional premium associated, but the costs of other amenities, like office and restroom space, and level of finish would drive that more. Also, construction type will also dictate where you fall in that range. For example, cmu walls will be costlier than metal buildings. But function and value also need to be considered. If you need any help designing your project, let us know - we have an engineer licensed in Vermont and getting reciprocity in Connecticut is a piece of cake. Thanks!
Jerold L
April 30, 2012 • 5:22 pm

Hi Dean,

What is the average cost per sq ft for building primary educational facilities in the Sacramento California region and what's the percentage increase for prevailing wage?

Thanks!
Dean Dalvit
April 30, 2012 • 9:27 pm

Hi Jerold,

You can find Cost data for educational facilities at the following post that I wrote:
http://evstudio.com/cost-per-square-foot-of-educational-facilities-by-region/
I do not know the percentage increase for prevailing wages, but you can infer regional cost comparisons by the data in the charts. Best of luck with your project!