Commercial Building Cost Guide
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Commercial building construction costs can range from $80 to $375 per square foot. A small office warehouse might cost around $45,000, while a large retail store could exceed $1,000,000. The final price depends on design complexity, intended use, finishing levels, and geographic location.
*Square foot estimates are for the building shell, foundation, and construction, excluding interior build-out.
Average Commercial Building Cost by Construction Method
The table below shows how the choice of materials and construction method can significantly impact the cost of a new commercial building. These estimates include the cost of materials, construction, and foundation.
| Construction Method | Material Cost/sq ft | Build Cost/sq ft | Finishing Cost/sq ft | TOTAL Cost/sq ft |
|---|---|---|---|---|
| Metal Stud Frame | $25 - $35 | $8 - $16 | $50 - $250 | $80 - $300 |
| PEMB* | $20 - $35 | $5 - $10 | $50 - $250 | $75 - $295 |
| Structural Steel | $45 - $60 | $10 - $20 | $50 - $250 | $105 - $330 |
| Tilt-Up | $40 - $55 | $50 - $70 | $50 - $250 | $140 - $375 |
*Pre-engineered metal building
Approximate Cost by Building Type & Size
The cost per square foot can vary greatly depending on the level of finish, location, and other factors. Here are rough estimates for popular applications using the pre-engineered metal building method, which is one of the fastest and most economical options.
| Building Type | Size | Approximate Cost |
|---|---|---|
| Small Office Building | 5,000 sq ft | $500,000 - $750,000 |
| Small Industrial Building | 10,000 sq ft | $900,000 - $1,300,000 |
| Retail Car Dealership | 20,000 sq ft | $2,400,000 - $3,000,000 |
| Small Retail Box Store | 50,000 sq ft | $3,500,000 - $5,500,000 |
| Large Retail Box Store | 150,000 sq ft | $10,000,000 - $13,000,000 |
| Medical Office Building | 30,000 sq ft | $9,000,000 - $13,500,000 |
Estimate Your Project Cost
Use our free online tool to get a preliminary estimate for your D-Class construction project.
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Advantages of Metal Construction
Choosing a metal building offers many benefits, making it an attractive option for various commercial applications. These advantages include exceptional durability, resistance to fire and pests, energy efficiency, and design flexibility.
Reduced Construction Time & Build Cost
Pre-engineered components can lead to 40% shorter construction times. With adequate planning, construction times for metal-framed buildings are measured in weeks rather than months.
Unobstructed Clear Span Interiors
With a clear-span building design, you can benefit from maximum usable floor space. Widths of up to 300 feet are standard, and with special engineering, they can even go up to 600 feet.
Energy Efficiency & Durability
Save on heating & cooling costs. With the correct insulation, metal frame commercial buildings can be extremely energy efficient. They also come with long warranties and require virtually no maintenance.
Inexpensive & Easy to Expand
Commercial structures can be expanded at a later date with minimal cost and disruption. If you anticipate future expansion, be sure to request 'expandable end walls' in your design.
Other Costs to Consider
Beyond the structure itself, several other costs are involved in any commercial building project:
- Financing: Interest rates and fees for construction loans.
- Permits & Fees: Costs for local building permits, zoning, and inspections.
- Site Preparation: Expenses for land clearing, grading, and utility connections.
- Professional Fees: Payments to architects, engineers, and general contractors.
- Interior Finishing: Costs for furniture, fixtures, equipment, and cosmetic details.
Construction Options
Several construction options exist for a new commercial building. Here is a brief overview of each method.
Pre-engineered Metal Building (PEMB)
This method uses prefabricated components that are manufactured off-site and assembled on-site. It's fast, cost-effective, and ideal for low-rise buildings under 30 feet in height.
Typical Build Cost: $20 to $35 per square foot
Light Gauge Steel Stud Framing
This method uses thin, lightweight steel components to frame a building. It is known for fast and efficient construction and offers a high level of design flexibility.
Typical Build Cost: $20 to $35 per square foot
Structural steel framing
Structural steel framing is similar to PEMB construction in many ways apart from the fact that most of the cutting and welding is performed on-site rather than at the factory. This method of construction offers greater design flexibility and has no height restriction, making it an ideal choice for multi-story office buildings.
Typical Build Cost: $45 to $60 per square foot
Tilt-Up Construction
This method involves casting concrete panels on-site and then tilting them up into place. It's a popular choice for large commercial buildings like warehouses and distribution centers due to its speed and cost-effectiveness.
Typical Build Cost: $40 to $55 per square foot
6 Ways to Save on Building Costs
Careful planning can significantly reduce the overall cost of a commercial building project.
- Careful Planning: Thoroughly plan the project's size, design, and location to minimize costs.
- Design-Build Approach: Streamline the process by combining the design and construction phases.
- Energy Efficiency: Use energy-efficient materials and systems to save on long-term costs.
- Consider Prefabrication: This method is often faster and more economical than on-site construction.
- Simplify the Design: Avoid non-standard shapes and architectural features to reduce complexity and cost.
- Negotiate with Suppliers: Work with contractors and suppliers to negotiate prices and secure discounts.
Frequently Asked Questions
How much does it cost to build a 10,000 sq ft commercial building?
The cost to construct a 10,000 sq ft commercial building can vary greatly. On average, you can expect a range from $50 to $275 per square foot, making the total cost between $500,000 and $2.75 million. The final price depends on location, materials, design complexity, and intended use.
How long can you depreciate a commercial building?
Under the Modified Accelerated Cost Recovery System (MACRS), the recovery period for most nonresidential commercial buildings is 39 years. However, different properties have different periods. It's always best to consult with a tax professional for specific advice regarding your property.
