Building Office Space

Office Building Construction Cost

Not all types of construction cost the same per square foot – and even more importantly, the price of construction per square foot varies a great deal depending upon location across the United States. In fact, location alone can represent as much as 70% of the cost driver for a single-story office building, with the median for this type of construction ranging between $160 and $170 per square foot.
Because the age-old question “How much does office building construction cost?” is not one that can be easily answered, it remains a topic of debate for many to this day. Due to the wide variation in costs across different markets, there is no simple one-size-fits-all answer.

How Much Does It Cost?

What Affects Your Building Cost 
Some factors that affect the costs of building any commercial project are; building materials, location, building type, and finishing.

The cost of commercial construction projects fluctuates a great deal depending on a variety of factors, including many pertinent variables such as:

Building Materials

The material used to construct a building will influence the total cost of the construction project. The more expensive the building material is, the more expensive the construction will be. For example, building with prefabricated material like wood will be cheaper than building with highly fabricated material like steel.

Building Type

The building influences the cost per square foot as different buildings are used for different needs. For example, a high-rise office building will cost more than a low-rise single-story warehouse.


The finishes used in a building will affect its costs. High-grade finishes cost more compared to mid or low-grade finishes.


Labor costs are hard costs that take up from 20% to 40% of building costs. Labor costs can be calculated by determining employee wages, training, and benefits.

Office Build Out

An office build-out is when a landlord’s contractor (or your contractor) perform construction on an office space to install walls, carpeting, paint, sinks, HVAC, ceilings, lighting, plumbing, bathrooms, and other such features, fixtures, and/or material finishes. The process of building out office space is also known as a tenant finish or commercial tenant improvements. Who pays for an office build-out depends on how you negotiate your lease contract. In some instances, the landlord will pay for 100% of a standard build-out; however, if you want high-end finishes, you may end up coming up a bit out of pocket

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