At a recent meeting of the ICSC Next Gen group here in Dallas, our colleague, Don Epperson, and I talked about a number of things related to costs and trends in our industry. In this, our first in a series reporting from that event, we talk about our old friend of a phrase "It Depends".
This phrase comes about because while we can have rules of thumb on cost, every situation has its variables and specific criteria to the situation. However, you only get to ask so many "It Depends" questions before the client or prospect or tenant tunes you out.
So, consider these types of variables:
- A restaurant of the same square footage as a soft goods retailer has many more requirements of equipment and code, thereby driving costs.
- A multi-level building, because of its structural differences, has different demands.
- Even demolition varies due to age of the building, what has to be removed and how it has to be removed.
You really have to consider each case. But by asking a few critical questions (try and keep it to three), you can quickly surmise the situation and give your audience the guidelines they are looking for for budgeting purposes.
Consider these rules of thumb, given some perimeters and basic assumptions:
- A water line averages $18 a lineal foot to install
- Storefronts and facades on buildings run $300 to $1,000 per lineal foot
- To provide adequate HVAC coverage plan on 1 ton of air per 300 square feet in a 12- to 15-foot tall space
- Concrete costs an average of $70 cubic yard
But it all depends......
Dave