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Calculating the Cost of a Commercial Remodel

Is it time for a remodel of your office, retail store, or restaurant? You're probably wondering how remodel costs will help your business and what kind of return on investment you will get after you remodel.

The last thing anyone wants is to be surprised when they get their final bill for the total cost of a commercial remodel. Remodel costs can vary depending on your building's class and your needs. Getting a good idea of the price range you can afford is one of the key steps in making your commercial remodel a reality.

The cost of a commercial remodel starts with a basic per-square-foot estimate. This can range from $20 to $30 on the very low end to over $500 per square foot. Let's break down how to calculate the cost of a commercial remodel, including design and architectural costs, materials and labor, building or space use and class, and building amenities.

Design, Architectural, and Project Management Costs

When hired separately, design and architectural services can cost anywhere between 4% and 20% of the total project cost. This is one reason businesses planning a commercial remodel can benefit from working with a design-build firm that provides architectural and design services and oversees the project from start to finish.

Before your project starts, you'll need a site visit to determine the project scope, followed by a design consultation. Other steps in the commercial remodeling process include:

  • Engineering consultations

  • Architectural design and fees

  • Engineering plan fees for mechanical, electrical, plumbing, and structural upgrades and changes

  • Architectural management

  • Permitting and zoning fees and working with local planning agencies

In every part of commercial remodeling, the experience and qualifications of architects, engineers, and project managers count. These professionals don't just help to keep costs in line and projects on schedule. They are experienced in creating the environment your business needs to grow and thrive.

Material and Labor Costs

The basic materials to complete your remodel and the people who do the work are typically the highest costs in commercial remodeling. You're investing money in your business's future when you start a commercial remodeling project, so it's wise to invest in the best quality materials you can afford.

For example, low-quality carpet can cost less than $1 per square foot, but it won't last very long. A marble or granite countertop can cost up to $100 per square foot, but these materials are going to withstand the test of time.

The same is true of labor. Labor costs can vary between 20% and 50% of the total project budget, according to the Construction Labor Market Analyzer (CLMA). Experienced general contractors, like Buildout Pros, have networks of qualified subcontractors that can provide the workmanship you need within your budget.

Building Class, Design, and Use of Space

For building, leasing, and renovation, commercial buildings and spaces are classified by their location and use. Office classes include:

  • Class A: High-quality offices which have upscale interiors, furnishings, and exteriors.

  • Class B: Mid-level buildings with average details and good-quality fixtures, furnishings, and interiors. The majority of buildings fit in the "Class B" category.

  • Class C: Lower-end buildings in lower-income areas, usually with older fixtures and fewer amenities.

Your commercial remodel project will need to comply with local codes for the use of space, environmental compliance, accessibility to customers, and energy use. An experienced, qualified general contractor and design-build firm, like Buildout Pros, can help you to control the cost of commercial remodel and comply with codes and regulations.

Finally, the intended use of space will impact the cost of commercial remodel projects. Space design, as-built drawings, and the contractor's expertise all come into play when controlling costs while providing the optimal renovations to create the fresh, new look and feel of your remodeled office, healthcare business, restaurant, or commercial building.

Amenities and Appearance

Working with a qualified firm that is committed to your success will help you to achieve your vision for a beautiful and functional new commercial space that represents your values and brand image. The amenities and appearance of your new space will be the foundation of your future success. Contact the professionals at Buildout Pros who can make your commercial remodel project a reality.

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