What does $200 / SF get you now?

Ed Waldvogel • July 8, 2025

Construction budgets are rising, but so are complexity and delays. Here’s what that means for real-world projects.

We’re spending more than ever to build...and getting less.

 

Back in 2015, I was building Starbucks stores across the western U.S. At the time, the core and shell came in around $180 per square foot.

 

Fast forward to today: You can spend well over $200/SF and still fall short.

 

In addition to inflation, we're also facing:

  • Longer permitting cycles
  • Stricter energy codes and plan reviews
  • Trade shortages and labor premiums
  • More ambitious tenant expectations

So what do smart teams do now? They shift their mindset from, How can we save?, to:

  • How can we build more efficiently?
  • How early can we align expectations?
  • Where can we avoid design, permitting, and coordination delays before they start?

Better planning and earlier management will help keep costs down.

 

Here's a look at current averages by building type:

Retail: $325 – $450

Office: $300 – $550

Medical Office: $280 – $500

Restaurant / Food Service: $250 – $600+

Warehouse / Industrial $200 – $300

 Source: Commercial Construction Cost Per Square Foot, HomeGuide


If you’re navigating growth, remodels, or team changes, let’s connect. A 20-minute call could save you months of headache.


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