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LNB Construction

Guide

Commercial Build Out Cost Per Square Foot

What build-outs actually cost, by space type, and the seven things that move the number.

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The Direct Answer

Commercial build-outs typically run from around $50 per square foot for a simple retail fit-out in a warm shell, to $300 or more per square foot for a restaurant or dental practice built in a cold dark shell. The single biggest variable is not your design. It is what the landlord handed you.

Cost By Space Type

Ranges assume a warm shell delivery in a mid-cost US market. What drives each one is in the third column, and it is more useful than the number.

Space TypeTypical Range Per Sq FtWhat Drives It
Open retail$50 to $100The least mechanical scope of anything on this list. Fixtures and storefront drive the number.
Office, standard$80 to $150Private office count, ceilings, lighting and data. Walls and doors are the expensive part.
Office, Class A or creative$150 to $250Glass fronts, conference AV, premium finishes and acoustics.
Med spa and wellness$150 to $250Treatment room plumbing and ventilation behind a retail-grade front of house.
Medical office$180 to $300Exam room plumbing, ventilation, harder ADA scrutiny and cleanable finishes.
Dental practice$200 to $350Per-operatory utilities, imaging shielding and the mechanical room.
Restaurant and QSR$200 to $400+Hood and make-up air, grease interceptor, floor drains, gas service, walk-ins and equipment.

Read the ranges as ranges. They assume a warm shell in a mid-cost US market, and a cold dark shell adds substantially. A restaurant taking over a well-equipped second-generation space can come in under the bottom of its band; the same restaurant in a cold shell can exceed the top of it.

The Seven Things That Actually Move The Number

In rough order of impact. Note that your design is not on the list until number four.

  1. Shell condition.

    The largest single factor. A cold dark shell means building HVAC, restrooms, ceilings, lighting and distribution from nothing. A warm lit shell gives you a slab, walls, roof and a utility stub. A good second-generation space means reusing most of a previous tenant's work, if the layout suits you.

  2. Mechanical load.

    Hoods, make-up air, medical gas, vacuum and dedicated exhaust. This is why restaurants and dental practices cost multiples of retail at the same square footage.

  3. Plumbing count and location.

    Every fixture is a supply, a waste line and often a slab cut. Fixtures in the middle of an existing slab cost far more than fixtures on an existing wet wall.

  4. Finish level.

    The gap between builder standard and brand standard premium is enormous, and it is the easiest place to overspend without noticing you have.

  5. Your jurisdiction.

    Energy code, seismic and wind provisions, accessibility triggers, sprinkler requirements, and how strict plan review is. The same build in a high velocity hurricane zone or under a strict energy code costs more than it does elsewhere.

  6. Square footage, in reverse.

    Small spaces cost more per foot, not less. General conditions, mobilisation, permits and supervision do not shrink in proportion to the floor plate.

  7. Schedule.

    Overtime, weekend work and expedited materials are all buyable. A compressed schedule can add 10 to 20 percent, which is worth knowing before you promise anyone a date.

What People Forget To Budget

None of these are construction costs, and all of them are project costs. Leaving them out is how a fully funded project runs short.

  • Design and engineering fees
  • Permit and impact fees
  • Furniture, fixtures and equipment, usually a separate budget from construction
  • IT, cabling, phones and AV
  • Signage and its own permit
  • Security and access control
  • A contingency: 10 to 15 percent on a build-out, closer to 20 on second-generation space

Warm Shell Versus Cold Shell, In Practice

Two tenants sign 3,000 square feet in the same centre for the same rent. One takes a warm lit shell with a finished restroom and a working rooftop unit. The other takes a cold dark shell.

The second tenant is buying an HVAC unit, ductwork, a full restroom including plumbing and ADA compliance, a ceiling grid, lighting throughout, and electrical distribution from the panel, before either of them has built a single wall of their actual layout.

Same rent. Very different project. This is why the work letter matters more than the rent number, and why we will read yours before you sign it.

How To Get A Real Number

Anything on this page is a planning range. A real number requires somebody to walk the space and look at the panel, the slab, the roof, the restrooms and the ceiling.

We do that for free, and the output is a line-item budget by trade rather than a range.

FAQ

How much does it cost to build out 2,000 square feet?
Using the ranges above, roughly $100,000 for simple retail up to $600,000 or more for a restaurant or dental practice. Shell condition swings it further than anything else.
Is a build-out cheaper than moving into a finished space?
Usually not in cash terms, because a finished space is priced into the rent. But you get exactly the layout you need, which for restaurants, medical practices and franchise brands is not optional.
Does the landlord pay for the build-out?
Often partly, through a tenant improvement allowance. It is almost always reimbursed after the work is done rather than paid up front.
What is the cheapest kind of build-out?
Open retail in a good second-generation space with a layout compatible with yours.

Next step

You Signed The Lease. Let's Get It Open.

Send us the space and the brand standards. You'll get a walkthrough scheduled inside 48 hours and a real number. Not a range, not a “starting at.”

No obligation. No pressure. If we're not the right builder for your project, we'll tell you on the call.

info@lnbconstruction.net

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