Hey all, I am wondering if you select a reputable architect to build a commercial building and tell them it needs to be, say, $80 million in hard costs, to what extent can they design the entire project to this budget? Can you expect that they’ll get you to that budget, or at least within 5-10% or so? Or do you need a cost estimator on your team to ensure your design will adhere to the target budget?
Trending Content - Real Estate Forum
| +69 | Is anybody just going to leave the industry? | 26 | 19m |
| +25 | Multifamily firms collpasing in Dallas whose next? | 8 | 21h |
| +22 | CRE Recruiting for a Career - crazy? | 4 | 14m |
| +17 | Exits from REPE | 10 | 57m |
| +15 | NYC Real Estate Job Market | 5 | 19h |
| +14 | Q3/Q4 CRE Job Market Optimism (or lack thereof) | 5 | 12h |
| +12 | Launching a Development Platform in Greece | 2 | 5d |
| +8 | Hard Money Lenders? | 1 | 5d |
| +1 | Thoughts About Starting CRE Broker Journey at Horvath & Tremblay or CBRE? | 3 | 2d |
| LIHTC Exits???? | 2 | 4d |
Career Resources
I wouldn’t recommend it - architects and design professionals are typically pretty bad from a cost estimation standpoint.
What most people do is tap their network of third party general contractors to get broad pricing guidance depending on what type of build they are doing (Type III, V, podium, wrap, etc.) for underwriting purposes. They then either take the project through full design to an RFP process to confirm final costs or you can do a design-build where you pay a preferred GC to sit in on your design teams and make recommendations to keep you within budget.
Another tactic I’ve seen is hiring an in house estimator. The easiest but more expensive and complicated option is to be your own GC and self perform the construction. This way you have your own subcontractor relationships and can check in real time where costs are.
This, 100%.
Do not expect your architect to build to a budget beyond "this project is really thin" or "we can get a little more creative with this project."
Qui omnis voluptates nihil libero et maiores ex. Est dolore qui aut provident non.
Fugit voluptatem minus unde harum molestiae illo voluptatem. Velit autem voluptatem doloribus expedita voluptatem. Dignissimos maxime numquam sit magni eligendi minus. Corrupti eligendi harum ex impedit vero id. Aliquid sunt facere pariatur sed possimus quisquam.
In quo mollitia aut amet. Non saepe incidunt nesciunt et. Assumenda voluptate voluptas ab dolore laboriosam. Odio nihil sunt aut. Sit iste impedit quas quis. Esse possimus illo non aspernatur suscipit at.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...