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Expanding your business: New construction vs. build-out

Construction business funding

How much is your construction project going to cost? Cost of commercial construction projects can vary considerably based on numerous factors.

Part 1 [In this blog series, you’ll learn key construction tips for an effective remodel/build-out project provided by Maxx Builders, a Texas-based, commercial general contractor and design company.]

The following table contains rough ballpark figures of various commercial construction projects in the Texas region – as an example. It attempts to account for the various factors that can cause fluctuation in the final cost of your project.

New construction (per square foot)

  • Retail building $95-$130
  • Gas station   $105-$125
  • Metal warehouse building $70-$90
  • Medical clinic $150-$220
  • Restaurant $120-$150

Build-out or major remodel (per square foot)

  • Retail-interior $35-$75
  • Restaurant-interior  $75-$120
  • Salon-interior $35-$60

Submitting a bid request

You will want to submit bid requests with design and construction vendors. Include blueprints or plans for your project. Get more than one bid. This will help you determine if prices are fair. Preliminary bids should give you a realistic budget going forward.

Conduct independent research for your geographic area as well as your business type. Perhaps, there are economic and/or consumer trends that you will want to weigh. Sometimes qualified tenants will get anywhere from 5%-10% from their landlord for tenant improvements. Find out in advance if you could take advantage of these types of opportunities.

Quick tip
When you do not have drawings, ask the builders if they have design services. Contractors may provide architects and engineers who work with you to design your project.

Click here for series part #2