The Northwood Group

Building Partner Investors

Construction Cost Updates – Q2 2013

June 10

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.

Ball Park Estimates Combined 2Q 2013