How Much Does It Cost To Build A Commercial Retail Building

A commercial retail building is a great investment for any business owner. They help to ensure that your business has the space to expand and grow, but it can be very expensive. Before you start construction on your new shop or restaurant, you should know how much it will cost to build one from scratch.

A commercial building is a building used for trade or commerce. It can be used to house retail businesses, offices, warehouses, and manufacturing. Commercial buildings can be very large or very small and can be built from a variety of materials including brick, steel, and concrete.

Commercial buildings are often multi-storied buildings with large windows and high ceilings. There are many different types of commercial buildings including warehouses, factories, offices, and retail shops.

Types of Retail Buildings

When you think of the term “retail building,” what comes to mind? A supermarket? A department store? Maybe even a strip mall or its constituent parts, like a fast food restaurant.

Though they may all look different on the outside, each of these retail buildings has one thing in common: they allow consumers to purchase goods and services directly from their owners. In this way, they differ from wholesale establishments (which distribute products in bulk) but are similar to manufacturing facilities (which produce goods for direct sale).

Why is it important to understand how these types of buildings work? Because when you’re looking at your own property and considering how much it might cost to build a commercial retail building there, or if you’ve already started construction work on such a project, you’ll want all the information you can get about exactly what goes into creating this type of structure before deciding whether or not it’s worth doing so.


Location is a key factor in determining the construction cost of a retail building. In fact, location can affect the cost of construction by as much as two-thirds of the total cost. The location of your retail building has a significant impact on its overall value and profitability. You will want to choose a site that offers easy access for customers and employees, as well as ample parking space near their main entrance.


The land is the most expensive component in commercial retail buildings. The cost of land varies significantly depending on location, size, and zoning regulations. Land costs can be as low as $1,000 per acre or as high as $50,000 per acre for prime real estate.

Because land is the most expensive component of commercial retail buildings, it’s important to find a location that can support your business. If you want to open a clothing store, for example, you may want to avoid opening one in an area where there are already several other clothing stores nearby.

Site preparation

The first step in building a commercial space is to prepare the site. You will need to remove debris and vegetation, level the ground, and remove dirt, rocks, and roots from the area where you plan to build. Once this initial preparation is complete, compacting of the soil is also necessary. This ensures that your foundation will be stable once it’s laid down on top of it.

There are several different ways to accomplish these tasks:

  • Using a backhoe – A backhoe can be used for leveling an area as well as digging up the dirt and moving it around. It can also assist with grading if needed (which means raising or lowering parts of an area).
  • Using a bulldozer – A bulldozer can be used for leveling an area; however, it cannot dig up dirt or move plants/vegetation like a backhoe can do because they lack these features


A foundation is a structure that supports the weight of a building. Foundations can be made of many different materials, such as concrete and steel. The cost to build foundations depends on what type you select and how complex it is. In general, it’s more expensive to build a foundation than not to build one at all, but there are some benefits to having a proper foundation:

  • Your property will increase in value if you choose an attractive design for your property’s exterior or interior;
  • You’ll have peace of mind knowing that your commercial retail building will stand sturdily for years or decades to come;
  • You’ll be able to sell the land with ease due to its increased value from having had a proper foundation built on top of it.

Interior & Exterior

Interior and exterior materials

The interior of your commercial retail building will depend on the style you want to create. If you want it to look like an old-fashioned general store, then you’ll need wood paneling and flooring. If it’s a more modern store, then glass or metal panels would work well. In addition to this, there are many other materials that can be used for interior walls such as stone, plasterboard, and concrete blocks (to name but a few).

The exterior finish of your commercial retail building is also very important because it can set the tone for everything else about your business by showing off your products in all their glory. Some good finishes include brickwork or stone cladding which can give any style from rustic chic through modern industrial chic right up until contemporary minimalist if needed but remember that whatever kind of look you choose should match what kind of customer demographic would shop at such establishments so make sure there aren’t too many contrasts between these two elements.


Plumbing is a major component of a commercial retail building. It is an important part of the building’s structure, and it provides a variety of services that are crucial to every aspect of your business. Plumbing transports water, waste, and gas from one place to another in your store or restaurant so that you can use them for cleaning and heating purposes. Plumbing also provides cooling and heating for air in the building.

Plumbing is a crucial part of every commercial retail building, and it is important to maintain the pipes and fixtures so that they work properly. If you do not maintain your plumbing system, it will eventually begin to leak or break down completely. This can cause extensive water damage in your building and lead to costly repairs.

Electrical works

Electrical works are important for the safety, comfort, and functionality of your building. Without them, you wouldn’t be able to operate your business at all.

The electrical works include lighting, power, and security systems. They’re more than just a matter of convenience; they’re essential to making the space safe for both users and employees. If electricity isn’t available in sufficient amounts or if it’s not properly distributed throughout the facility (with backup systems), it could pose significant hazards both inside and outside the building itself. This can lead to unnecessary injury as well as a downtime while repairs are made.

Labor cost

The size of the building will determine labor costs. The larger the project, the more skilled labor is required to complete it in a timely fashion. Labor costs also depend on what type of construction you choose for your new store:

If you choose an open-concept plan with no walls or limited interior walls, then there will be fewer walls to build and much less material required to finish off those walls that are used. This will result in lower labor costs than if you were constructing a store with solid concrete block walls throughout.

In terms of location, labor rates vary widely depending on where your commercial retail building is located (e.g., city vs suburb). In large metropolitan areas like New York City or Los Angeles, contractors charge higher hourly rates than contractors who operate in smaller towns across America’s heartland where wages tend to be lower due to fewer jobs available within their local economies (i.e., unemployment rate).

Average Total Cost per Square Foot to Build a Retail Store

If you’re looking to start your own retail business, you might be eager to get going with construction. But before you begin, it’s important to know how much it will cost and what factors affect that price. In general, it costs between $16 and $20 per square foot ($100–$120/m²) to build a retail store. In order for these numbers to make sense, though, let’s talk about the average size of these buildings and why they cost so much.

The largest part of the cost comes from labor, which is why contractors are so expensive, but materials also play an important role in determining how much it will set you back. In addition, location plays an important factor because land prices vary depending on where you want your store located. The design is also important; some designs are more complex than others, which means they’ll take longer or require more materials.

If there’s one thing all successful businesses have in common (whether they’re brick-and-mortar storefronts or e-commerce operations), it’s finding ways to save money where possible without sacrificing quality or customer satisfaction. This is one way DIY projects can help reduce costs while still building something awesome.

Commercial Retail Building Permit Costs

The cost of a commercial building permit varies by state, city, and size of the building. You can find out how much it will cost to build your store with an online calculator.

In general, commercial building permits are more expensive than residential ones because they require more work. The inspector has to check everything thoroughly because if there’s even one mistake in construction, you won’t be able to use it for business purposes.

Additional Expenses of Building a Commercial Building

The cost of building a commercial building is not just the price of the materials and labor. You should also include extra fees such as:

  • Permits – A zoning permit will determine if you can build where you want to, while an occupancy permit determines how many employees your business can have in the space. It’s important to get these permits before construction begins so that it doesn’t hinder progress later on.
  • Insurance – The costs associated with insurance vary depending on what type of business you’re running, but typically range from $1-$2 per square foot annually (or more). If possible, try to incorporate this into your total budget so that it doesn’t come as an unexpected bill at the end of construction.
  • Construction Management Fees – These fees usually add between 5-15% onto your overall project cost and are paid upfront when hiring out certain services for construction management or oversight.”

Commercial Building Insurance Costs

The cost of commercial building insurance varies dramatically depending on several factors. The first thing to consider is where you live. If your location is prone to severe natural disasters such as earthquakes or floods, expect higher premiums due to the increased risk of damage to your property and the expense of cleanup after an event like this occurs.

The size of your commercial building also makes a big difference in how much it costs for insurance premiums. Larger buildings often have more square footage, which means they’re more likely to suffer damage from weather or other instances that require rebuilding work afterward. You will also pay more if you have any unusual features in your building that are difficult for contractors or insurers to deal with, for example, if there’s a restaurant inside but no kitchen facilities for preparing food safely without contaminating other parts of the restaurant (meaning you’ll need expensive venting systems). Finally, if you hire someone who isn’t qualified enough for certain tasks involved in constructing a new retail business building (like installing drywall), then this could cause delays during construction which also increases risk levels and therefore premiums paid out by insurance companies over time.

Retail Store Construction Costs

The cost of building a retail store will vary depending on the location, size, and type of building. It’s also important to consider whether you are building a new or existing building, as well as the number of stories your retail store will be.

Here are some examples of average costs for a single-story retail store:

  • $50000-$500000 – small town grocery store in an older neighborhood with no parking lot
  • $125000-$250000 – small town convenience store with limited parking space
  • $150000-$200000 – small town bank/dry cleaner/laundromat combo in an older neighborhood.

How Much Does It Cost To Build A Commercial Retail Building

The cost of construction depends on the size of the building, location, materials used, and type of building.

Let’s look at each factor in turn:

  • Size. The larger a commercial retail building is, the higher its cost will be. This is because it requires more labor and materials to build a large structure than a small one. For example, if you want to build a 20-foot-by-20-foot structure with walls that are 10 feet high at its highest point; you’ll need around $6 million worth of construction material on hand during construction (assuming everything else stays constant). However, if you want to build an 80-foot by 80-foot structure with walls that are 20 feet tall, then it would take roughly five times as much money ($30 million) just for all of your raw materials. These numbers don’t include other costs like labor or equipment rentals though so keep that in mind when planning out your project budget.

The average commercial building costs anywhere from $16 – $20 per square foot.

Commercial buildings are the most expensive type of building to construct. It costs anywhere from $16 – $20 per square foot to build a commercial building, whereas it only costs about $11 – $15 per square foot to build an office building. The average retail store costs between $13 and $15 per square foot to construct, but this cost does not include the land or any construction materials needed for the project.

If you are planning on building your own commercial retail building, there are many things that you need to consider. The first thing that needs to be done is a financial analysis (and this article can help), but after that comes the actual costs involved in building. Here are some things to think about when planning out your construction budget:

Materials and Labor Costs – Materials such as concrete, lumber, or drywall will all be added to the total cost of construction. The amount of labor required for each aspect of construction will affect how much money it takes to complete your project. It’s important to understand what kind of labor costs go into building a commercial retail building so that you can plan accordingly.

Permits and Inspections – Permits are required for any type of construction project, even if it’s just a small one-story addition at home. It’s also important to know how much these costs would be because they could add up quickly depending on how many inspections there will be during this time period.”

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