Cost per Square Foot of Commercial Construction by Region

by Dean Dalvit on August 6, 2009

We get this question all the time: How much does it cost to build a commercial building? There is no quick answer and without more information about the project and its location, is essentially akin to asking how many angels can dance on the head of a pin. However, there is some guidance provided we know where you are located and what kind of building you are looking to build. Local economy is a very important factor in construction cost as well as the type of construction you intend to build.

We subscribe to RSMeans’, researchers of construction cost data nationwide, and have come across some important current data on the cost of commercial construction for four different commercial project types as a function of their location. Note, that not all types of construction cost the same per square foot, and even more importantly, the cost of construction per square foot varies significantly with location.

Below are four different types of commercial construction and the varying cost per square foot to expect for each in different regions.  All graph images are courtesy of RSMeans Construction Cost Data. Data source: Reed Construction Data – RSMeans/Charts: Reed Construction Data – CanaData

One Story Office Building

As you can see from the range of cost per square foot, location alone can represent as much as 70% of the cost driver for a single story office building. The median for this type of construction is between $160 and $170 per square foot. Not surprisingly, New York tops the charts for most expensive city to build in for all of these building types.

Convenience Store

Convenience stores are generally less expensive to construct than the other building types because of their simpler nature.  The median cost for this commercial building type hovers around $100 per square foot.Fast Food

Because of the new trends in fast food being more boutique and less assembly line, the cost for a typical fast food restaurant is on the rise. Expenses for kitchen equipment also drive this building type to a median of near $200 per square foot, the most expensive of the four building types in this discussion.

Day Care

It is increasingly important to understand the cost drivers for any commercial project and how building type, construction type and location can all be huge variables that will drive your cost per square foot. These are always a part of the initial programming discussions and the Architect will play a huge role in helping to define the ranges of cost to expect for the project.


{ 262 comments… read them below or add one }

Dean Dalvit January 16, 2018 at 8:35 am

Thank you for your question – it is a very good one. We are often asked how to adapt historical data to current budget expectations. The easiest method is to calculate cost increases based on an index. Many construction cost indexes are available on the Internet, and often they come in the form of a chart which simply shows what Today’s cost would be if the historical cost of some previous year was one dollar. In that example, you would simply multiply today’s indexed cost to the cost per square footage of that previous year. The other way to calculate it is to compute the rate of inflation expanded over the number of years from that historical data. For the US, the average rate of inflation generally hovers around 3%. So if construction cost per square foot in 2009 was $100 per square foot, then for 2017, we would take $100 X 1.03 ^ 8. This results in a 26.7% increase, or a construction cost of $126.68. Note that local economies can have a significant impact on that average rate of inflation (as they also do with construction costs in general). In very hot markets, the rate of inflation could run up much higher over an extended period of time. In the long run, up and down markets take that average back down to a moderate number, however we have seen a strong recovery since 2012, and some markets are posting double digit percentage increases in construction cost per year for a few years running. This data should be readily available for most markets, and you would simply take that percentage per year and calculate the projected cost per square foot as shown above. I hope that helps and thank you for your question.

Vas Shrinivas January 15, 2018 at 7:22 pm

Cost per SFT of commercial building on the website is 2009 cost. How much has gone up in major cities since 2009? Is 20-25% more in 2017 is a safe assumption?

Dean Dalvit November 26, 2017 at 7:47 pm

Mahdi, thank you for your question. Industrial buildings in Austin Texas typically run between $100 and $120 a square foot depending on site considerations, construction type and building program including level of finish. EVstudio does have an office in Austin and a great deal of expertise with these types of buildings. We would be happy to speak with you further about your project and help you take the next steps with architecture and engineering design. Please let me know if you have made a selection on your design team and if not, we would love to set up a meeting and go from there. Please email us at or call us at 303-670-7242. Thank you

Mahdi Al Sallami November 25, 2017 at 9:06 pm

I’m starting a feasibility study to build a 5000 sf industrial hall in Austin – Texas. Could you please give me a rough estimated cost ?


Mahdi Al Sallami November 25, 2017 at 8:51 pm

I want to know the expected cost of a covered building for industrial use in Austin – TX .

Dean Dalvit October 30, 2017 at 5:28 am

Hi AJ,
Thanks for your questions. We provide A/E design for projects all over the country and even a few internationally as well, so Ft Lauderdale is well within our area of service. To answer your questions, we should start at another article I’ve written that is specifically about mid rise office building costs per square foot:
As you can see, the data suggests a turnkey cost of approximately $160/sq.ft. However, bear in mind that this article was written in 2012, so escalating that by the indexed growth will add nearly 20% and take you to a turnkey average cost of $192/sq.ft.. and given that’s an average, I’d say an acceptable range would be $185-$200/sq.ft.. Now, the core and shell of the building will represent approximately $120-$150 of that cost and the tenant finish will be in the neighborhood of $50-$80/sq.ft. Depending on a great many factors. Building efficiency and the amount of common area and amenities you have to finish as part of the core and shell as well as the level of finish for both the lobby areas as well as the tenant spaces for example will drive these numbers. Highly amenitized class AA and AAA buildings for example can easily run well above these averages. I hope this helps. If you would like to discuss further and program your project so you can get a better sense of scope and costs based on your specific project, please let me know and we can set up a time to talk. I can be reached at 303-670-7242 or Thanks!

AJ October 29, 2017 at 5:40 am

Hi Dean, I read your email exchange with Brad in Fort Lauderdale. We are also in Fort Lauderdale. Do you have representation here? Similar to Brad’s planning, I am planning to build a mixed use building that will initially build out for my office needs, which by completion (2019) will be 20k sf. When tenants inquire, we would build out with their lease agreements. I understand from your article and various responses that we would be in the range of $150sf for the area that is completed. I am not clear on what the cost would be for the unfinished areas. In a perfect world I will be able to build 6-8 floors at roughly 150ft / 100ft, including one or two levels of under building parking. The immediate question is what it costs for unfinished open footage? thanks so much, AJ

Dean Dalvit June 9, 2017 at 6:06 am

Understood Michael,
Our construction cost information is based on RSMeans data along with past project data on projects that we’ve been involved with. I don’t have any examples of projects that specific to your use or location. I would suggest reaching out to other contractors in the area who have worked on similar projects and see if they will share that information with you. Good luck and if you are in need of a world class A/E design team to help you with the design, please let us know. Thanks!

Michael Tomczak June 9, 2017 at 5:49 am

thanks, but I am trying to find some reference material on recently completed Casinos in the general vacinity of this property. I have costs per Sq Ft for the contractor and need 2 comparibles

Dean Dalvit June 9, 2017 at 4:44 am

I’m certain we can help. In rough numbers, you should be able to use $200/sq.ft. as a starting point for an average across all product types. Then adjust up or down based on factors such as level of finish, complexity, etc.. if you can send us your plans to, we’d be happy to review them and give you a more refined estimate of construction cost. If you don’t have plans yet, we’d be happy to work with you on developing everything from initial concepts to full permit drawings that are designed to meet your budget. Just let us know how we can help. Thanks!

Michael Tomczak June 8, 2017 at 1:01 pm

Doing a plan and cost review of a Casino expansion in Gulfport Mississippi. I am having trouble digging up cost breakdowns for this type of facility. Any suggestions of where I would start my search?

Dean Dalvit May 17, 2017 at 4:46 am

While I have not written an article about construction costs for this project type, we do have experience with this product and your range of $100-$110 per square foot for the Chicago area should be reasonably accurate for a starting point in your pro forma. The cost is more or less depending on the location in the country, and the Chicago area tends to run a bit higher than the median. Best of luck with your project and if you need any architectural or engineering resources, please let us know. Thanks!

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