Commercial Construction Cost Per Square Foot 2013

The commercial construction business took a pretty big hit after the financial crisis of 2008. Given the nature of the crisis, this was understandable. All across the nation, jobs were lost, while homes and businesses were abandoned, leaving the economy in shambles. Residential and Commercial properties lost dramatic amounts of value, and real estate, along with all the industries that rely on it (including construction) took severe hits as well.

Real Estate Stayed Strong

Although the damage to the industry was nationwide, there were some regions that weathered the storm better than others. Washington D.C, for example, lost less value, and recovered faster than any other region in the United States. This is due in large part to the median income in D.C, as well as the nature of the industries in which that income is made. These industries include various lobbying, private and public government workers, bureaucrats, and all of the service sector jobs that come with supporting those jobs. According to a report by the Wall Street Journal, which used 2010 census data, the median household income in Washington D.C. in 2010 was $84.523, which is significantly higher than the national median income around $50,000.

Why Washington D.C. Offers Good Investment Value

Despite the fact that Washington D.C. has among the highest median incomes and highest property values in the United States, the construction costs are far lower than in other major metropolitan areas. This makes commercial construction a particularly worthy investment when compared to the rest of the country. According to RSMeans Construction Costs Data, the average commercial construction cost per square foot in Washington D.C. is $162.02. When compared to the cost per square foot in New York City of $215.01, San Francisco of $201.47, Boston of $190.12, or Chicago of $187.08, Washington D.C. offers builders and investors a far lower initial investment requirement when compared to other major cities. Washington D.C. even comes in below more spread out cities like Los Angeles ($176.24) and San Diego ($170.82).

The differences in cost are dramatic even when drilling the data down to specific sub-sectors of the commercial construction industry. For example, the construction per square foot of office space in New York City averages $230.79, while Washington D.C. comes in at $171.07.

Looking to the Future

According to a report by a leading construction industry publication, the U.S. economy, along with the construction industry, are finally recovering at an increasingly rapid pace throughout the nation. Washington D.C. is poised to remain at or near the top of the pack with regards to value and profitability for commercial investors. Although inflation will increase some costs across the board, rapidly growing areas like Washington D.C. will outpace inflation by a significant margin.

Looking for a commercial property maintenance company? Premiere Works offers customers in the greater Washington D.C. area with a variety of services such as flooring, painting and complete office remodels.