In evaluating the benefits of investing in commercial construction, you will probably be interested in the average cost of construction. This cost varies given a number of different factors and should be considered highly variable in time and place.
The average cost of commercial construction will be the average cost of an entrepreneur’s experience when building a commercial property. The general contractor will usually appoint a third party to arrive at an estimate of the expense. The average costs will depend on the region or city, the materials used, the type of structure being built as well as the market forces during the project.
- Trending since the 1980’s
In the 1980’s, the average cost of commercial construction was often more expensive than current figures in 2010. One of the main reasons for this decline is the decreased value of steel. Increases in the cost of living may have made the job more expensive, but at the same time, technological advances have made the dollar work more efficiently spent. In the early 1990’s, some estimates suggest that the average cost per square foot may have fallen as much as $ 30.
The average cost of construction relates to the location. According to a 2009 report by architectural firm EV Studio, a one-story commercial building in New York costs almost $ 100 more per square foot than it does in Cleveland (compared to $ 215.03 $ 162, 19). The report not only describes these city-based stats, but also their variations according to the type of business structure. Convenience stores are much cheaper than building one floor per square foot, while fast food restaurants cost significantly more.