How to Calculate the Commercial Construction Cost Per Square Foot

Types of commercial building construction

There are many different types of commercial buildings, each of which will have different requirements and fit-out and finish costs. All the following figures are 2021 costs for Chicago Illinois, thanks to Cummings Insights.

These figures don't include land costs or soft costs - only hard costs are included. They include full construction and interior build-out, within the Chicago city limits.

Office buildings

When constructing office buildings there is a wide range of options from a single-story office building all the way to mid and high-rise buildings. If the office units are being built to be rented out to different customers they may not be fully built out, as the new residents will want to do the finish and layout to suit their particular business. Whereas if the structure is for a single client they may want to have the building fully fitted out as part of the construction project.

Average costs per square foot for different types of office buildings, including build-out:

• Single-story: $332 - $399
• Mid-rise: $663 - $795
• High-rise: $761 - $914

Retail outlets

When you think of commercial buildings, retail buildings probably spring to mind. Retail construction can be split into two categories. Smaller local strip malls are much cheaper to build at approximately $343 - $411 per square foot. Larger shopping malls are more costly, often with high-end fittings, costing around $511 - $613 per square foot.

Hotels

When looking at the average commercial construction costs for hotels one of the major factors affecting the price per square foot is the class of hotel and therefore the standard of building materials and finishes used.

Manufacturing facilities

In the category of manufacturing facilities, there are various types of commercial buildings including factories, warehouses, and laboratories for technology companies. Warehouses cost between $206 - $320 per square foot, less than half the cost of technology laboratories which cost around $666 - $798 per square foot.

Healthcare facilities

Every community needs healthcare facilities and this type of construction can range in price depending on the level of the facilities. Acute care facilities, like hospitals, can be very expensive to fit out, as can be seen below. They require very specialist wiring and air control, as we've learned from recent years with the necessity of negative pressure rooms. Medical clinics and office buildings are less costly, although many clinics will require very precise specifications.

• Acute care facilities: $835 - $1,113
• Medical office buildings: $475 - $570
• Specialty clinics: $594 - $713

Educational institutions

When you think about commercial buildings you don't always think about educational institutions such as schools and universities, but building one is still a commercial construction project.

Schools are generally cheaper to build than universities, as they have simpler facilities. For example, universities may have high-tech lecture theatres and laboratories.

Average costs, per square foot for educational buildings:

• Elementary school: $262 - $314
• Middle school: $287 - $344
• High school: $315 - $378
• University classrooms: $586 - $703
• University laboratories: $809 - $971
• University dormitories: $315 - $388

Parking structures

One of the cheapest commercial buildings to construct is a parking structure. They don't require insulation and the most important specification is structural strength, in order to hold the weight of hundreds of cars.

Above-ground parking structures are the cheapest to build at only $68 -$89 per square foot. Underground parking structures are increasingly more popular in highly developed urban areas as they don't take up any valuable above-ground space. Commercial construction costs for underground structures are more expensive as excavation and structural reinforcement costs are higher, meaning that underground parking structures cost on average $154 - $188 per square foot.

Public facilities

Commercial construction costs for public and community buildings have a wide range of costs per square foot, from recreation and sports facilities starting at $499 per square foot, all the way up to museums and performing arts facilities which can cost as much as $1,162 per square foot. This category also covers public buildings including police stations and government offices and other government buildings.

• Recreation and sports facilities: $499 - $416
• Police stations: $605 - $725
• Government buildings: $634- $767
• Performing arts and museums: $930 - $1,162

Frequently Asked Questions

How much does it cost to build a 10,000 sq ft commercial building?

The commercial construction prices for a 10,000 square foot commercial building will depend very much on the exact type of building you are looking for. If you are looking for a 10,000 square foot above-ground parking structure it may cost as little as $680,000, But for a high-end 10,000 square foot museum or performing arts facility, it could cost as much as $11.6 million.

How do you calculate commercial construction costs?

When you want to calculate the commercial construction cost per square foot it's very important to know the location of the building, the type of building, and the specific construction and fit-out specifications for the commercial building. Each of these factors will have a huge impact on the commercial construction cost per square foot.

With their specialist knowledge of the local labor, materials, and planning regulations they will work with you to calculate a more accurate commercial construction cost breakdown.

If you're in Chicago, speak to Fortress Home today to discuss the specific commercial construction costs per square foot for your project. Contact us now on +773-770-8607 or email [email protected]

What is the average commercial price per square foot?

When asking about the average construction costs for commercial buildings you have to know what type of building you want to construct and where you want to build it as the average cost per square foot of commercial construction by region varies greatly.

For example, in an expensive city like San Francisco, the price per square foot for a high-rise building is between $833 - $1,001 but in Denver, it would only cost between $345 - $485 per square foot.

How much does it cost to build large commercial buildings?

Commercial construction pricing changes based on many factors, including the type of building, the exact specifications, the size, and the location. Without more data on these other factors, it's impossible to give approximate commercial construction building costs.

Commercial building experts in Chicago

In Chicago when you need a commercial construction project completed on time, to budget, and to a very high standard of quality, contact Fortress Home. With over 20 years of building commercial and residential structures throughout the greater Chicago area, they will ensure your commercial building project is a success.

Call now: +773-770-8607 or email [email protected]