Construction cost for commercial shell building

8 Replies

How much is the reasonable price range to build a strip center in Indiana? Just a basic shell can be used for retails and restaurants. Does anyone know price range per square ft?

Besides, if hire a general contractor to do the shell, do I need to hire somebody else to do inspections after they finish? Or any long as they passed city department inspection I am ok?

Thank you for replies.

Originally posted by @Anna Shan :

How much is the reasonable price range to build a strip center in Indiana? Just a basic shell can be used for retails and restaurants. Does anyone know price range per square ft?

Besides, if hire a general contractor to do the shell, do I need to hire somebody else to do inspections after they finish? Or any long as they passed city department inspection I am ok?

Thank you for replies.

I don’t know the costs there but it will greatly depend on the site, type of construction and the design of the building. Most areas in Southeast are $50-$150

Yes a GC will get all the inspections you need for a Certificate of completion then the tenants will build out the space and get their own permits and CO when their done.

@Greg Dickerson

Hi, Greg

Thanks for your reply. It is about 0.7 acre, 3 unit 5200 square feet, restaurant ready, but shell only, with drive through around building and all site work done. Only front are bricks, and side are EFIS. How much do you think it will be a reasonable price range. I tried to do some research online it it said national average would be $115 and up.

And if there was a small old building on it, how much normally demolition job will cost?

Thanks

Originally posted by @Anna Shan :

@Greg Dickerson

Hi, Greg

Thanks for your reply. It is about 0.7 acre, 3 unit 5200 square feet, restaurant ready, but shell only, with drive through around building and all site work done. Only front are bricks, and side are EFIS. How much do you think it will be a reasonable price range. I tried to do some research online it it said national average would be $115 and up.

And if there was a small old building on it, how much normally demolition job will cost?

Thanks

I would think $100-$125 a foot plus or minus for steel structure, brick, EIFS and storefront glass. This would be limited slab and stubout for the restaurant.

Demo will vary depending on the age of the building, permits and dump fees but most small buildings single story 2500 sqft would probably cost around $10k

 

You need to get a (fee for developer) local to where you live. You have to pay money but they tend to walk you through the process and you learn from their expertise, process, and connections.
You could also possibly joint venture with them if your funds are low.
For Indiana there is good investor demand to buy as cap rates are higher for newly built product versus other states and property taxes are generally not overly high.

What stuff usually costs will depend on contractor demand for the area. You also have for interior the TI, leasing commissions, legal fees, etc.
There is a ton of analysis that goes into the built out value of the center depending  on mom and pop tenants, regional, or nationals occupying the space.

Originally posted by @Anna Shan :

@Greg Dickerson

Hi, Greg

Thanks for your reply. It is about 0.7 acre, 3 unit 5200 square feet, restaurant ready, but shell only, with drive through around building and all site work done. Only front are bricks, and side are EFIS. How much do you think it will be a reasonable price range. I tried to do some research online it it said national average would be $115 and up.

And if there was a small old building on it, how much normally demolition job will cost?

Thanks

 What is the age of the building? Older will have asbestos concerns which is additional cost maybe 20% more...

I recently had a client buy a shell office from New Construction. I was very worried about warranty since it had sat for so long. Ended up having a lot of leaks and maintenance issues BUT labor was no longer under warranty since over a year from completion. Just a concern from the other side...