The Northwood Group

Building Partner Investors

Construction Cost Updates – Q1 2016

March 7

Commercial Real Estate Broker Utah

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.

Ball Park Estimates Q1 – 2016

A few items on the report that I found interesting and noteworthy:

  • The increasing cost of tenant improvements in the office world.  Oftentimes I see too low of assumptions on re-tenanting office buildings.
  • Small industrial buildings range from $65 to $67 per square foot.  Lease rates have not kept up with construction costs and it is very difficult to develop this type of product.  Good news for those already owning this product type.

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 (