Cost per square foot is a fast way to build early budgets for commercial projects. The number varies widely by building type, finishes, and region, so it should be used to frame a budget rather than to set a final bid. This guide explains how to use square foot ranges responsibly.
Typical Commercial Ranges
| Building Type | Cost per Square Foot |
|---|---|
| Retail shell | $90 - $160 |
| Office build-out | $120 - $240 |
| Medical office | $180 - $320 |
| Warehouse / distribution | $70 - $130 |
| Restaurant | $180 - $350 |
| Hotel | $150 - $320 |
What Drives the Number
Building geometry, structure type, MEP intensity, and finish level are the largest drivers. A warehouse with simple structure and minimal MEP costs far less than a medical office with dense mechanical systems. Regional labor and material costs also shift the number.
Refining the Budget
Move from square foot ranges to a detailed estimate as soon as drawings develop. Break the work into divisions, measure quantities, and apply current pricing. The master estimating guide walks through the full process from concept to bid.
Regional Differences
Costs vary by state and metro area. The USA estimating blog publishes a state-by-state commercial cost guide, and our state-by-state cost factors article covers the drivers behind the differences.
