We are grateful for Bonneville Builders regularly supplying us with updates on construction costs in the commercial real estate Utah market. As the commercial real estate investment market continues to heat-up prices tend to inflate as they relate to the underlying construction costs. These estimates provide a good basis for comparison. The link to the report is below.
A few items on the report that I found interesting and noteworthy:
Hopefully this information is helpful. Please feel free to reach out to Bonneville Builders direction for questions on the data provided. They can be reached at 801-263-1406 or JohnT@bonnevillebuilders.com (www.bonnevillebuilders.com)
Several times each year we share estimates of commercial real estate construction cost changes on different property types. We think a review of the replacement cost of buildings is a good metric to consider when evaluating commercial real estate investments. Note that these numbers do not include land costs. The most notable construction cost increases were in metal buildings and masonry block industrial buildings, which saw 20% and 10.7% increases respectively over the 4th quarter of 2012. Class B office construction costs remained relatively flat, with slight increases in most other commercial real estate property types. Please click on the link below for the full report, prepared by Bonneville Builders here in Salt Lake City, Utah.
Please click the following link for the May 2012 construction cost update from Bonneville Builders. Even if you’re not considering building, evaluating a 1031 exchange or commercial real estate investment property from the perspective of replacement cost is an important metric. I hope that you find it useful.
Quarterly, we receive construction cost estimates from Bonneville Builders. While it is difficult to make accurate estimates without an understanding of the specific project, it is helpful to have some ballpark figures to run as estimates, especially as you are looking at potential re-tenanting costs, etc. when considering a commercial real estate investment deal. Click on the link below for the table. I hope that you find this helpful.