Building a commercial property

5 Replies

I'm looking at building a commercial property, part of which I will use for another business that I own, the rest I plan to lease out to other companies/individuals.

I had thought about buying and converting a building to fit my needs, but after doing research, I discovered that I could build a building to my needs for half the price of buying a similar sized building - and that's before factoring in costs to convert the building.

So the question that I have for those who have built their properties is: Is there a guide or checklist that I need to ensure that I have things done in the proper fashion. I'm talking more along the lines of permits and making sure everything is good to go with the city that I build in. In addition, are there things you wish you knew before you built your first property that would help me in my journey? Thank you!

It’s hard to believe you can build for half the cost of comparable properties, if they have comparable construction. The actual site work, outside of the building cost, can be a surprising number.  

Obviously, you’ll have to have an architect, cicvil engineer for the design and plans creation before you can get construction bids.  Don’t know what kind of impact fees you may have there.

@Rob McGahen I grew up in Pensacola. I went to Booker T Washington High. Love Pcola.

One thing is do not close on the land until you get all the entitlements. 

First step is to discuss the property and project with the city to make sure you can do what you intend. They will tell you the process, timeline, permit, bonding and impact fees if any etc. you Leo need to check on utilities serving the property.

Once you determine the project lols feasible you want to get the property under contract contingent upon getting all permits and approvals for what you want to build.

Next you can engage a design build GC to handle the entire process for you or you can hire architects, engineers separately to do the design then engage a GC for buds and construction phase. Either way the GC will handle getting all permits.

Feel free to reach out if you would like to discuss in more detail.

Hi @Greg Dickerson , thanks for your response! I've lived here for about seven years now, and it's growing on me!

This all generated from an online business I started out of one of our spare bedrooms a few years back. It's outgrown my house and a friend of mine is letting me use some of his extra space, but I've grown beyond that. So, in looking for something larger, everything that I was looking for in the space I needed was either too big for what I needed, or was too expensive.

So, I decided to build what I needed.

To build a conventional building would be in the ballpark of $80-$100 a square foot. But, prefabricated buildings are far, far cheaper. I've talked to several companies, and they all offer what I am looking for at a much lower rate (they will handle manufacture and construction of the building). Now, I'm obtaining other quotes (electrical, plumbing, concrete...) just so I can put everything together. I don't have the final numbers yet, but I'm looking to be in the area of $25-$30 per square foot.

But, I don't want to miss anything. I've already talked with the city about what I'm looking to do and they have given me guidelines and such, so I know what I need as far as that is concerned. I already have a property in mind, and it fits my requirements (and it would work with code requirements as well).

I'd be curious to know your thoughts, and I'd be more than happy to discuss more with you!

Originally posted by @Rob McGahen :

Hi @Greg Dickerson, thanks for your response! I've lived here for about seven years now, and it's growing on me!

This all generated from an online business I started out of one of our spare bedrooms a few years back. It's outgrown my house and a friend of mine is letting me use some of his extra space, but I've grown beyond that. So, in looking for something larger, everything that I was looking for in the space I needed was either too big for what I needed, or was too expensive.

So, I decided to build what I needed.

To build a conventional building would be in the ballpark of $80-$100 a square foot. But, prefabricated buildings are far, far cheaper. I've talked to several companies, and they all offer what I am looking for at a much lower rate (they will handle manufacture and construction of the building). Now, I'm obtaining other quotes (electrical, plumbing, concrete...) just so I can put everything together. I don't have the final numbers yet, but I'm looking to be in the area of $25-$30 per square foot.

But, I don't want to miss anything. I've already talked with the city about what I'm looking to do and they have given me guidelines and such, so I know what I need as far as that is concerned. I already have a property in mind, and it fits my requirements (and it would work with code requirements as well).

I'd be curious to know your thoughts, and I'd be more than happy to discuss more with you!

 Site work will be a significant cost. You need to nail that down. Feel free shoot me an email with your contact info and we can set up some time to discuss.