Rough Retail Hard and Soft Cost PPSF Estimates.
Looking to build 20,000 SF 2 story retail with parking at grade, mid-higher end. Texas market if that matters.
Any hard/soft cost PPSF estimates would be helpful.
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Ah, the Texas market, where everything's bigger, including the ambitions! Now, let's swing through the jungle of numbers to give you a rough estimate for your retail construction costs. Keep in mind, these are just estimates and the real costs can swing faster than a vine in a hurricane depending on market conditions.
Based on the most helpful WSO content, here's a breakdown:
Hard Costs: These are typically the bricks and mortar of your project. For a mid to high-end retail space, you might be looking at more than the $300 per square foot (psf) mentioned in the context, especially considering the higher-end finishes and potential complexities of a two-story structure with parking.
Soft Costs: These are the sneaky ones that don't involve actual construction but are essential to the project, like architectural design, engineering, permits, and legal fees. The context mentions soft costs at 15% of hard costs, excluding tenant improvements (TI's), leasing commissions (LC's), and debt. So, if your hard costs are, say, $350 psf, your soft costs could be around $52.50 psf.
Remember, these are just base estimates. The Texas market might throw you a curveball with local regulations, labor costs, and material prices. Always best to consult with a local construction firm or a cost estimator to get the most accurate numbers for your specific project. Swing high, and may your retail dreams be as grand as a Texas skyline!
Sources: Multifamily Rent Per Square Foot vs. Rent Per Unit, Developers - How do you calculate how much to pay for land to develop a rental property?, Q&A:New Real Estate Development Shop, Industrial Properties - What are the key things to know?, Modelling Test - Please tear it apart :)
Market matters for sure. Haven't built anything 2-story recently (is the second story retail or you're proposing another use on second floor?) but for standard single floor open-air retail in Canada you're at ~$500pbsf plus TI right now assuming no major site work required.
This is just hard + soft costs? Assume excluding land?
Correct
Thanks, this is helpful, hoping Texas is cheaper lol. Would be a second story of retail. Without plans I was quoted $200 PSF (USD) for core and shell including GC Fee/Contractor Contingency etc, not sure on site work yet cost, but parking will be at grade and lot is pretty flat. I was assuming something like $250 USD all in for Hard costs and soft costs around $65 (the bot is getting good), but could be off. This is a new market for me so trying to figure it out.
Keep in mind the USD is 35% more valuable then the CAD dollar right now.
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