#Inside of a office building driver

Zoning will also determine, at least in part, what type of materials will be required for the build. One of the most important factors is zoning – depending on what the land is zoned for will determine the cost of each of the various permits you’ll need in order to begin construction. In addition to the type of building in question, there are several other key geographical factors to take into consideration when determining commercial construction costs. How Geography & Zoning Affect Construction Costs High-grade finishes cost more compared to mid or low-grade finishes. The finishes used in a building will affect its costs. Labor costs can be calculated by determining employee wages, training, and benefits. Labor costs are hard costs that take up from 20% to 40% of building costs. For example, a high-rise office building will cost more than a low-rise single-story warehouse. The building influences the cost per square foot as different buildings are used for different needs. Generally, building in a highly populated urban area like New York City will be more costly than building in a less populated area in the Midwest. The place you choose to build will determine the final costs you incur. The more expensive the building material is, the more expensive the construction will be.įor example, building with prefabricated material like wood will be cheaper than building with highly fabricated material like steel. The material used to construct a building will influence the total cost of the construction project. Some factors that affect the costs of building any commercial project are building materials, location, building type, labor, and finishing. Many experts use reference guides such as Spon’s Architect’s and Builder’s Price Book (by year) for typical construction costs. In order to get a true determination of the cost of build-out, you need to specify not only the square footage, but the height of the building, as well as the materials used in construction. However, it is important to note that this information isn’t attempting to account for the many factors that can cause such fluctuation, but to simply provide a general reference point with regard to the cost of different types of commercial buildings:Īs rates vary by region, you must specify this information before determining the costs of anything. Industry type (i.e., is the building in question a small corporate office in a residential setting, or a massive headquarters-type structure in a major city)īelow is a chart with rough estimates of the cost of various commercial construction projects in the Midwest.The experience of the contractor and his costs.How Much Does a Construction Project Cost?Īs we’ve touched upon, the cost of commercial construction projects fluctuates a great deal depending on a variety of factors, including many pertinent variables such as: How costs differ in the different regions in the USA.How Much Does a Construction Project Cost?.In this article, we’ll explore cost-influencing factors that can affect the prices of commercial building construction across the U.S. Due to the wide variation in costs across different markets, there is no simple one-size-fits-all answer.įor example, new structures in shell condition will be much more expensive than second-generation buildings, whereas items such as doors, certain material finishes, ceilings, etc. Keeping these figures in mind, it’s no surprise that New York tops the charts for the most expensive city to build in for all of these building types.īecause the age-old question “How much does office building construction cost?” is not one that can be easily answered, it remains a topic of debate for many to this day.

#Inside of a office building driver

In fact, location alone can represent as much as 70% of the cost driver for a single-story office building, with the median for this type of construction ranging between $160 and $170 per square foot. In recent studies, statistics show that not all types of construction cost the same per square foot – and even more importantly, the price of construction per square foot varies a great deal depending upon location across the United States.