Office building pricing is an extremely important issue. This is because it affects the economy of many countries throughout the world. How much does it cost to build an office building? The pricing of an office building is a complex process. Many different components go into the overall price. These include land, air rights, zoning, necessary clearances, project scope and timing, and fees to consultants and contractors for cost estimation or construction management services.

Below is a guideline on how much does it cost to build an office building.

The Price of the Land

The price of land for an office building is based on its location, e.g., downtown, midtown, and in size square footage, among other factors. The ideal building site should be located in an area with road access, good transit access, good views, plenty of parking, easy pedestrian access, high-quality public utilities like sewer lines/pipes, the ready availability of power, ability to handle the expected number of employees during rush hour traffic periods, and, available 24-hour security throughout the project.

In case you are wondering how much does it cost to build an office building, one thing to look at is the price of land. Generally speaking, buildings with better transit access are more expensive than those without good transit access. This is true because companies pay for employees’ time. If an office building is inaccessible by public transit, it may be less desirable to potential occupants. The alternative to public transportation would be to provide subsidized parking, increasing building costs considerably.

Land prices and construction costs are consistently higher in cities than outside suburbs. However, it is important to note that many janitorial services charge lower prices per square foot when they clean downtown rather than suburban ones. This janitorial cost difference allows extra profits on office space in cities. Parking lots are another expense reduced by building closer to downtowns. This is because retail spaces can often be purchased nearby and used as parking lots.

Area Zoning Restrictions in Building Development

No business owner wants to pay more than necessary when they seek commercial electrical contracting or commercial HVAC contracting. However, when commercial buildings are built, they must be brought up to code. Many commercial construction projects require the help of a commercial contractor to meet building codes and regulations. This allows for secure and safe commercial buildings that bring customers in and increase revenue. The last thing a business owner wants is their customers and employees to be unsafe due to improper facilities.

Almost every major city has zoning laws that affect building development in the area. These laws typically include various height caps for each zoning district within a city’s limits. They also include dimensional restrictions governing how far a structure’s roofline must be set back from the street line for safety. Zoning laws also prescribe setbacks from other structures on adjacent properties and how far a structure may extend over public sidewalks. The overall effect of the zoning laws is to ensure that buildings do not cast shadows on parks, reservoirs, or other vital city infrastructure components.

Zoning ordinances also determine whether a building site must be rezoned from residential to commercial use before construction. For instance, there are height restrictions for new office buildings in many U.S. cities that vary depending on street-level widths and nearby structures’ heights. There are also preservation issues such as historic district ordinances protecting specific properties in certain neighborhoods. Some of which date back to pre-industrial times. When looking at how much does it cost to build an office building, remember to factor in zoning laws affecting building development in the area.

Scope of the Project

Typically, an architect will be required to produce supporting documents such as phasing schedules and cost estimates for various design options. The architect’s service charges will typically range per hour for work. The costs include the fee for preparing these documents, in addition to the cost of standard architectural drawings and graphic presentation materials, e.g., AutoCAD. However, estimating software can help estimators save time when developing estimates by producing sophisticated computer-generated models.

For larger projects, low-bid contractors may be required to submit proposals along with payment bonds guaranteeing their ability to perform the work. So, how much does it cost to build an office building? The total cost of an office building is low when compared with other types of real estate development such as apartment buildings or shopping centers due in part. It is easier to finance one building than many different tenants. Single-tenant occupancy makes it easier for lenders to assess the risk of default.

Project scope, which is the overall understanding of what a project seeks to accomplish and how it will be completed, affects office building pricing in several ways. A septic tank pumping provides an example of where project scope affects office building pricing. When considering septic system pumping, the project scope includes the number of septic tanks and how many times a year they will need to be pumped.

Project scope determines whether or not septic pumping is included as part of the service contract. High-level project scopes tend to be more generic and allow for greater flexibility in pricing than low-level project scopes. Low-level project scopes provide more detailed information about services and specifications, while high-level project scopes provide less detail but allow for more flexibility.

Office Building Finishing Cost

Many people do not have the answer to how much does it cost to build an office building. There are several considerations to make in pricing your office. One factor that makes offices cheaper to build than retail or residential buildings is that office building typically requires less finishing. For example, no kitchens and bathrooms are required, which reduces costs. Office buildings can also be built more quickly than other commercial buildings. They need fewer elevators and support spaces such as restrooms and electrical closets.

Less equipment needs to be procured and installed during construction, often saving weeks. Furthermore, an office building often has higher sales per square foot than a shopping center would. It can defray its expenses across multiple tenants rather than one owner/occupant who may not fill all the available space with paying customers. Office building construction typically begins with extensive steel framing or concrete shell elements prefabricated. For example, in some cases, it is economical to have the structural steel contractor deliver bare framed structural steel components for a building that will eventually rise three stories above grade level while at this same time having the sheet metal contractor deliver built-up roofing assemblies two stories high.

One of the main reasons commercial real estate has become so expensive is that a large amount of commercial office space is often leased below market rates using complex formulas and calculations. The formula for commercial office pricing considers many factors while also considering expected rent per square foot in future years to make a better investment. A major reason commercial real estate prices keep rising is the increase in the cost of hiring a commercial iron work expert in finishing your office building.

Cost of Amenities

When looking for details on how much does it cost to build an office building, ensure you look into amenities. In many countries, it is common for different real estate developers, e.g., high-rise residential, mid-rise residential, single-family detached homes, to build separate developments with little or no amenities offered between them. Even if zoning rules allow a particular type of developer to share parking facilities with another type, in practice, this is not done since it would mean lower income from each property type.

Office buildings may also contain fitness centers and indoor playgrounds for children if they anticipate potential employees having young families. Office buildings commonly offer amenities such as parking at no extra charge or very low cost to tenants. The developer only needs to purchase one parking structure. If each tenant had a separate surface lot, it would drive up construction costs due to excavation requirements. For example, horizontal drilling of footings into bedrock. In addition, many offices now offer bicycle facilities, including either secure storage lockers or repair stands and showers for bicycle commuters.

New office buildings require air conditioning to cool or heat air in a building. The air conditioning system is typically split between a mechanical air handler unit and the air-conditioning compressor. Nowadays, higher air conditioning costs can be associated with energy consumption as the use of fossil fuels increases. If you want to build an office building today, it would be significantly more expensive than those built ten years ago. Air conditioners consume more power from a conventional power plant burning coal or natural gas.

Data Network Cabling Costs

For persons trying to figure out how much does it cost to build an office building, it is crucial to keep up with the current building trends. Modern office buildings tend to be pre-wired for data network cabling during construction. This ensures that desks and workstations can easily be moved into place upon completion without waiting for telecommunications contractors to pull cable through walls and ceilings. The trend is becoming increasingly important as telephone companies deprecate analog lines instead of all-digital services.

This means that if a business moves its phone number from one office building or even one floor within an office building to another, it will no longer be possible for customers with conventional telephones, those lacking keypads or other computerized features to reach it by dialing that business’s former phone number. VoIP services are commonly used throughout an office building, making phone calls more affordable for tenants. VoIP services also help save office space by eliminating desk phones.

VoIP service can use phones or even computers to make and receive calls. VoIP service requires unique high-speed internet connections in addition to VoIP equipment to function properly and without interruptions. Office buildings require voice recognition software to make voice commands to control appliances within one’s business or personal space, such as turning on and off lights, controlling room temperature, playing music, and opening and closing blinds. Cables for voice recognition technology must be implemented during construction.

Cost of Hiring Contractors

Another piece of advice for someone seeking how much does it cost to build an office building is that they should consider the cost of hiring contractors. One common question among commercial property owners is why they should hire contractors rather than build themselves, cut out the middleman and save money. In most cases involving facility inspections, certain requirements need to be met for commercial roofing services, commercial general contracting, or commercial electrical contractors to be hired.

For example, roofs need to meet certain requirements to be considered commercial buildings. All commercial buildings of a certain size need to have general commercial contractors. Most commercial building owners do not itemize the cost of hiring versus doing it themselves. This is because they do not realize more than meets the eye for commercial building construction. Commercial building owners who want high-quality commercial roofing services need the right commercial roofing contractor for the job.

For example, commercial roofs that use certain materials require certifications and licenses to be considered a commercial roof designed for commercial buildings. Having a residential-based contractor may not always cut it for commercial building owners. Some commercial building owners hire general commercial contractors because of the lower costs. However, this is a riskier option than hiring a commercial roofing contractor. This is why professionals always recommend having a commercial roof installed by commercial roofers with licenses and certifications.

The concept of office space pricing has become an interesting yet quite ambiguous topic. One major factor of importance is awareness of current market rates of office building prices. Many factors are taken into consideration to determine the price of an office building. The location, size, and especially the quality are all things that dictate the answer to how much does it cost to build an office building. Since the recession, office buildings have been smaller spaces that many people share. There is a strong market for office buildings in major cities like other real estate firms.