New Construction Square Footage Cost

[Kenneth C.]

Hello,

I close on a 1000 sq. ft. lot this week. I've been conversing with several architects over the past several months while we work through issues with the city and the parcel's title (iykyk). My intention initially was to maximize the cash flow and build a triplex. However, it seems the most feasible option would be to build a duplex. With that in mind, I initially was basing my construction cost on the footprint of the lot (i.e., $160.00 * 1000 Sq. Ft). Even with a higher per square footage charge that I'm using, I've been told that isn't the best way to estimate your cost. It was suggested to me that a more accurate way is to base it on the square footage of the proposed building. Do you all have any insight on this?

Looking forward to your responses!

Cheers!

[William Sing]

The square footage of the building is going to be much better. The cost of a one-story building vs a two-story building will be different even on the same lot. For costs in Portland, OR I have seen costs be between $225-250/sqft on the lower end to up to $350-375/sqft and they only do it by the size of the building sqft. The lots determine how big you can build for the most part. Hope that helps!

[Bruce Woodruff]

Usually we estimate based on the square footage multiplied by $X per sf. IE, a 2000 SF build x $200 per SF would cost $400k to build. This is just for getting an idea in your head of the possible cost of course, the actual cost per SF will vary based on the final plans and the finished usually drive up the SF $$

[Scott Mac]

Hi Kenneth,

Regarding the structure.

Side by side is a better duplex layout than over/under if you can manage it on the lot.

No complaints about loud upstairs renters in a side by side.

Also think noise reduction between the units, inside and outside, as well as privacy between renters.

[Kenneth C.]

@William Sing Thank you for the feedback.

[Kenneth C.]

@Scott Mac

Thanks for the feedback re: the structure. This lot is 20 ft. x 50 ft. so I'm pretty much confined to an over/under layout.

[Kenneth C.]

@Bruce Woodruff Thanks. The example of the 2000 SF Build is the square footage of the building and not the size of the lot correct?

[John Teachout]

If the lot is seriously only 1000 sq feet, I don't know of any towns around our area that would allow the construction of anything on a lot that small. 

[Bruce Woodruff]

Quote from @Kenneth C.:

@Bruce Woodruff Thanks. The example of the 2000 SF Build is the square footage of the building and not the size of the lot correct?

 Yes, but as @John Teachout said, that might be too small for a build. There is usually a minimum ratio, like 50%....so that would mean you could only build 500 SF.....

[Roarke Van Brunt]

I was hoping you did a typo and the lot size was 10,000 square feet.  Philly has a zoning guide to help on the city website.  If your lot is truly 1,000 square feet you might have some problems on your hand. Hopefully your architect sees a code path for the usage you are planning.

https://www.phila.gov/document...

[Kenneth C.]

@John Teachout @Bruce Woodruff Thanks for the feedback guys. With regard to the square footage of the lot, it's not a matter of "if" I can build, it comes down to how many units am I able to build.

@Roarke Van Brunt Ha. It is not a typo. If I had a lot that was designated as RSA-3 or RSA-5 and I wanted to convert the zoning to RM-1, in that instance those guidelines would apply and I would not be allowed to rezone the lot to RM-1. However, I would still be able to get a variance to have multiple units.

Thank you all for your insight, however, the purpose of this post was concerning the calculation of the construction cost. If you have any other info re: how you calculate construction cost, it would be greatly appreciated.

Regards,

Ken

[Bruce Woodruff]

Quote from @Kenneth C.:

If you have any other info re: how you calculate construction cost, it would be greatly appreciated.

Well there is no way to accurately 'calculate' the costs, you will not have a number that you can count on until you get a Contractor to sign on the dotted line and agree to do 'X' for $X.

You can throw a number like $300 per SF at the project for starters, to see if it is viable, but you really need to get out there and start having Contractors bid your approved set of plans.

[Roarke Van Brunt]

@Kenneth C.  Glad you have a path forward for usage, that made me worried at a glance.  Happy to hear you can get a variance.  For costs on a wood frame building I wouldn't go with anything less than $225/sqft right now, for estimating, and that is a no thrills building.  But regional differences can play a large factor in that, I am in Portland and it's not the cheapest market to build in. 

I would suggest if you have a plan (permit ready), or even a solid test fit.  Do a takeoff and build a budget with something inexpensive like a Saylor's manual (linked below) and whatever number you come up with, even if you have markups, add 20% at the bottom line as an Estimating Contingency.  That's just an example if it would help.  You should be able to push out a reasonable budget pretty quick, just give yourself some margin to work with.  The cost isn't real until you have a contract signed up on the dotted line anyway.  

http://www.saylor.com/new-prod...

[Kenneth C.]

@Bruce Woodruff @Roarke Van Brunt Thank you both!