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Recent deals I've worked on in NYC:
> Industrial $241psf HC, $80psf SC
> Self Storage: $179psf HC, $25psf SC
> Office : $800psf HC, $109psf SC
All three were development deals and these are based on budgeted for construction figures.
This is great- thanks for that.
It's also important to take into consideration (1) location variables such as traffic and transportation services (e.g. subways), (2) whether you're including escalations and contingency, and (3) if we're talking union or non-union.
Also - $800/psf for just pure office is pretty high - backs you into a ~$700/sf figure with a 10% contingency and 2.5% escalations over two years. I'd have to imagine this is a Hudson Yards type of building.
The office did have a few floors with unique build outs given how the development was positioned for future tenants, so the HC does have some implied TI baked in.
The industrial and self storage is rather basic to fulfill market demand construction.
Here I am in a tertiary market watching MF deals get built at 150 HC.
$$$$$$$$$$$
It's tough. Varies a lot by asset class and type of construction, obviously. And different GCs buy trades at varying rates.
For what it's worth, we're building a ~130,000 sf market rate rental building for about $245/ft in HC and $100/ft SC, block and plank construction. But we bought out our trades about a year ago so I'm sure pricing has shifted well north of $250 by now.
Got it, thanks for the anecdote. I'm looking strictly for multifamily- should have clarified. I'm basically trying to back into replacement costs for NYC multi...so looking into where land is trading and then getting an idea of the different types of development costs by construction type. Very broad, I know.
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