Middle TN - I'm planning to build a retail strip, 7800 - 15000 sqft on a 2 acre strip with narrow end facing main road. How can I figure out project costs?
I'm currently working with an engineer and have the conceptual plan. The engineer drew the building for 7800, however, he said I could make it bigger. I need to figure out costs and finances.
[{"id": "hvkx9di", "text": "This question is so vague and poorly informed I doubt you will see any credible answers. \n\nI have an idea, how do I do it?", "replies": [{"id": "hvled2z", "text": "This is a shitty response. His question was inexperienced, not poorly worded.\n\nRather than be ass, maybe just reply \u2018I don\u2019t know.\u2019", "replies": [], "depth": 2}], "depth": 1}, {"id": "hvl3c97", "text": "Talk to a banker and a contractor?  If you have to ask this, I wouldn't recommend building a retail strip center...", "replies": [{"id": "hvlw0ox", "text": "Seriously. You\u2019re planning a massive project, and are asking Reddit how to figure out costs. You\u2019re a LONG way away from ready for a project like that.", "replies": [{"id": "hvm0j4m", "text": "Good luck getting financing", "replies": [{"id": "hvm4o7d", "text": "Thanks, I have a business counselor helping with that.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hvl4x81", "text": "Reminds me of Joe Kennedy\u2019s conversation with the shoe shiner. Time to sell everything\u2026", "replies": [], "depth": 1}, {"id": "hvl7z78", "text": "Make sure you build on a drive thru can substantially increase rents on that space send me a site plan is this in a strong retail corridor?", "replies": [], "depth": 1}, {"id": "hvla568", "text": "You might want to check on prices with contractors and bankers. Construction costs in Central FL are running between $340-$500 PSF after sitework on a 2 acre project right now for vanilla shell space. Metal building costs are pretty expensive and have really impacted costs.", "replies": [], "depth": 1}, {"id": "hvldkn5", "text": "[rsmeans.com](https://rumens.com) is a construction cost estimating service.", "replies": [], "depth": 1}, {"id": "hvle2lh", "text": "Take your conceptual drawing from your architect &amp; shop it to 3 local GC\u2019s &amp; have them create a conceptual budget.\n\nThis a routine diligence activity. All GC\u2019s are familiar with the process.\n\nOnce you receive the conceptual budgets, sit down with each GC &amp; discuss the potential cost magnitude of the changes you had in mind.\n\nThe conceptual budgets will break down to a price per sq ft. This can be generally applied to the expansion. I.E. you are expanding by 300 ft &amp; can multiply 300 by your cost per sq ft.", "replies": [{"id": "hvm2myt", "text": "Thank you for the helpful info! My engineer mentioned that too and I'm thinking that's probably one of the best ways to go about it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hvlypv4", "text": "Ur prob looking at $400-500 psf with hard and soft costs to do a shell product, plus building out enough parking, then TI to get people in there, and everything else that goes along with building something like that. It\u2019s not cheap", "replies": [{"id": "hvm4zt9", "text": "Yeah I know it's going to be costly. I'm trying to figure how much so that I have an idea of my fiance options.", "replies": [{"id": "hvmbgs6", "text": "I\u2019d start at $500psf for assumptions.. retail is going to demand $60-$100+ in TI depending on location/market/lease length etc\u2026 so I\u2019d dig around your market to see what the average is and go from there\u2026 but I\u2019d contact a GC and have them bid pricing and such (one you finish CD\u2019s) cause ur not going to really know until someone digs in and actually prices it all. \nUr smaller regional bank will most likely be ur best construction loan partner, ur just going to have to refi/sell within 3-4 years", "replies": [], "depth": 3}, {"id": "hvn4aq6", "text": "Unless you go to a hard money lender, it might be tough to get a construction loan without any experience imo", "replies": [], "depth": 3}], "depth": 2}, {"id": "hvn99p1", "text": "Seems high for a retail strip. I\u2019m seeing those hard and soft costs for residential condos in secondary metro markets", "replies": [{"id": "hvnjgkv", "text": "It\u2019s possible I\u2019m high, I haven\u2019t underwrote retail in prob 7 years now.", "replies": [{"id": "hvo41ca", "text": "Yeah I wouldn\u2019t quote construction costs while you\u2019re high lmao", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hvm135y", "text": "For all those with negative and discouraging comments, I'd like to inform you that I'm in the researching and planning phase. I am working with an engineer and business counselor so I can do this correctly. I came to this subreddit for help with some additional resources. I already had ideas from the engineer and my business counselor but I thought I'd reach out here as well. Jeez.", "replies": [{"id": "hvnsav5", "text": "Those people hate themselves for not being in your position, that\u2019s why. Anyone that has had experience on succesful projects or deals is encouraging you and being positive. Ignore the negative self hating people, they\u2019re beneath you", "replies": [], "depth": 2}], "depth": 1}, {"id": "hvmcfnm", "text": "You need to find a good cost estimator who is experienced in front end cost modelling.  They will be able to advise on typical build costs, professional fees, permits, etc.  Someone who is experienced in this can provide that advice without having to do material takeoffs of developed drawings.", "replies": [], "depth": 1}, {"id": "hvmhde7", "text": "Involve planning and zoning early !!! You don\u2019t want to make a design and find out later something isn\u2019t right.  For example a 20 ft setback was really 30 ft or new buildings require sprinklers or sidewalks that weren\u2019t in the plans", "replies": [{"id": "hvmo3x8", "text": "Yup, definitely the next step after I do some modifications to the concept plan we have now. I chose a local engineering company because they know the city planning and commissions dept pretty well.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hvndt9r", "text": "Do you have utilities already?  What size?  I\u2019m sure your design team is in this already, but thought I\u2019d mention it before you invest too much.  Also, #1 suggestion\u2014look at your zoning first.  Get a list of \u201cpermitted uses\u201d allowable in your zoning district.  Also get a copy of the City\u2019s comprehensive plan if they have one.  Make sure what you want to do is what the City planner wrote in the Comprehensive Plan.  If it\u2019s not, you probably won\u2019t have the city planners support and the board of aldermen and P&amp;z usually pick up on that.  Make sure who you plan to lease to can easily get a biz license in your zoning area.  Plan for at least 2 food uses in the building.  Absolutely try to incorporate a drive through in your concept plan.  Don\u2019t apply for permits to the city without asking for help w something.  You\u2019re spending money to bring tax revenue to their city.   Try to get \u201cplanned development\u201d zoning so you get bigger signs and maybe less parking restrictions.  Have you talked to the Transportation District about a public bus stop there\u2014do it now before you build if it\u2019s something you want.  Get it located across the street \ud83e\udd23 if you can do it doesn\u2019t block viz to your building.  Talk to sewer district if you need to plan on grease traps in parking lot.  Consider segmenting the building into multiple buildings to keep contiguous SF under certain thresholds, you may find advantageous for certain accounting and insurance concerns.  Good luck!  DM me if you have any questions", "replies": [], "depth": 1}, {"id": "hvng9ak", "text": "Before you dig further into the details on expenses (would need more details to even ballpark) what\u2019s your plan for tenants? 7800SF building perpendicular to the road will be more difficult to lease up and you will have to step down rents the further you go from the end-cap\u2026unless you shadow a box, etc. Can you achieve $30psf rents in this location (based on rough numbers by other comments) and are you planning on building spec?", "replies": [], "depth": 1}, {"id": "hvppv3w", "text": "If you need New or Repurposed carpet tile feel free to contact me. I have Large quantities available for projects like yours\n\n[FIBRcarpet.com](https://fibrcarpet.com)", "replies": [], "depth": 1}, {"id": "hvrirhm", "text": "Not a cost related answer, but I\u2019d suggest having an experienced retail broker look at the conceptual plan for input. Engineers are awesome and knowledgeable but at the end of the day you need to have a design that facilitates leasing as much as possible. Someone else mentioned trying to work in a drive-thru. Great advice. Two would be even better if possible. Outdoor patio/seating is also more important now than ever. Having the right mix of space sizes is important. You want to avoid spaces narrower than 15\u2019 wide and want to keep the depth between say 50\u2019 and 65\u2019 deep. Give or take but those are some general guidelines. I saw someone else say you need to budget for $60-$100 of TI. That\u2019s not my experience at all. Depends on your market but generally TI could equal 1-2 years of base rent.", "replies": [{"id": "hvrnmkx", "text": "That's excellent advice. I never thought of involving a retail broker early, I thought that would come in when I'm building.", "replies": [], "depth": 2}], "depth": 1}]