Commercial Construction Cost Breakdowns

Construction costs, including commercial construction costs, are typically measured in cost per square foot. Location, materials, local economy and type of building all factor in. It is essential to plan and stay on top of projected costs – and to do so in cooperation with necessary parties. For example the architect in a building project is very disposed to keep track of cost projections as is the construction project manager.

Location of building is so critical that it can often represent the vast majority of the project cost. Therefore locations such as San Francisco and New York can cost tremendously more for a building cost per square foot than other cities or rural centers.

Location is important not just because of urban popularity and high real estate costs, but because of weather treatment as well. Locations in earthquake- or tornado-prone areas require additional construction techniques and materials, as do colder, heavy snow areas. Location costs are also impacted by local building codes – building permits are of course different (and required) for specific locations, and those required differences can heavily change the costs.

Commercial Construction Cost BreakdownsCommercial construction and buildings can be separated as office, retail, lodging, industrial and amusement. The commercial building industry has been steadily increasing since the great recession. In addition to this upfront cost demand, the costs to rent commercial building space has been steadily increasing.

Architectural style and construction repeatability also factor into commercial construction cost breakdowns – convenience stores are simplistic structures and can cost less than other buildings. Fast food restaurants in the past were simplistic structures costing less than other buildings. However these days fast food restaurant roll-outs are meant to give a fuller, more multi-sensory brand experience to customers than in years past – requiring more construction activities and consequent higher costs.

Another commercial construction cost to compare is insurance. For example, concrete or steel are used more and more these days in comparison to wood in construction due to their lower insurance costs. Architecture can also impact insurance costs – such as with the style of roofing designed.

Labor of course can be a cost in any industry – including it as a factor in commercial construction cost breakdowns. Labor is important in the U.S. as more and more Americans prefer getting college degrees for office jobs as opposed to traditional trades. So the demand grows.

Other changing factors in commercial construction cost are sustainability and modular elements. Modular construction items are growing in popularity in construction – in part heavily due to environmental issues. Modular, pre-fabricated construction elements are easier to build (and faster), with less disruption of the building environment. Of course additional environmental sustainability building requirements cost more to implement.

As the economy continues to grow so does demand for industrial space (for warehousing, etc.) – driving costs up further. These and the other commercial construction cost breakdown factors including location, codes and regulations, weather, architectural style, materials, labor, modular and sustainability elements all contribute to growth of industry and demand.

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