Costs to Build a Big or Small Shopping Center Design
Shopping center construction budgets can be complicated affairs. There are usually a very large number of variables that can affect the budget. It can be helpful to understand some general guidelines and practices to build a small shopping center design that can be used as a starting point to determine if a construction bid represents a truly competitive offer.
Project Breakdown for Big or Small Shopping Center Design
As with most construction projects, shopping mall construction x can be broken down into five basic costs:
- The cost of the land and external features
- The cost of design and development
- The cost of building materials
- The cost of labor
- The cost of machinery
The Cost of Land and External Features
This cost is sometimes overlooked when discussing a retail store construction, but it can add up to a significant amount depending on the situation. Most big or small shopping centers require significant landscaping and parking lot construction.
This cost can vary widely depending on location. City locations tend to cost more than locations at the edge of town or in rural areas. It is best to make this choice very early on in the project because it affects almost everything in the budget. For example, the average cost to build a shopping mall in Los Angeles California is $24.9 million.
The Cost of Design and Development
A professional architect and architectural firm will be needed to properly layout and design a big or small shopping center design. This is in no way a small part of the budget. The architectural firm generally consumes about 17 percent of the project’s total cost.
The architect has many responsibilities both in the initial design and construction phases. They will often be the ones to determine the initial and final budgets. Beyond the actual design of the structure, they will also handle any permits, requirements and paperwork required by local agencies. It is their responsibility to make sure the project meets regulations. In places like Los Angeles California, regulations can be strict and represent a surprisingly large amount of work.
The architectural firm will continue to oversee and manage construction for the duration of the project. They serve as an overseer for the contractors to ensure that their requests and costs are accurate, on-budget and timely.
The Cost of Building Materials
A wide variety of materials are required for shopping mall construction. The exact amounts of materials are determined according to the building’s design and size.
Here are a few general items true of most projects:
- Reinforced concrete foundation
- Vinyl and carpet flooring
- Steel beam and column roof
- Plumbing consisting of six fixtures per 4,000 square feet
- Heating and cooling systems including the actual units and ductwork
- Security systems that may include smoke detectors, cameras and motion detection systems
- Elevators, escalators and stairwells
- Doors and partitions, in particular, aluminum float glass double doors in front.
- Interior gypsum board walls
- Exterior brick face or stone walls
- Additional office space and mezzanines
A major factor in cost that deserves some additional thought is the level of finishing provided to the retail spaces inside. Most shopping centers provide vanilla shells that give all the basic services like electrical and partitions and allow the tenant to make personalized improvements. It can sometimes be beneficial to provide turn-key spaces for the initial tenants who have agreed to move in upon completion of construction.
Turn-key spaces are already fully prepared according to the tenant’s specifications. They cost about three times more to produce compared to vanilla spaces, but offering them can help attract critical initial tenants. Materials costs amount to about 48 percent of the total cost for the project.
The Cost of Labor
Labor costs include the contractors and various subcontractors hired out to perform the work on the structure. The architect and contractor usually make all the decisions regarding subcontractors, and this can have a significant impact on labor cost.
Most cost estimates assume that all labor work is unionized, although costs may be reduced if non-union labor can be found. The labor costs for the average project represent about 38 percent of the total cost for the project.
The Cost of Machinery
All major construction projects require the rental of various heavy machinery that represents a significant portion of the construction costs. In general, about 5 percent of the construction costs for the project are consumed with machinery.
It is important to have a good idea of a project’s actual cost before agreeing to a bid for a small shopping center design project. Generally, the lowest bid is a poor representation of final costs because low-ball offers typically do not account for all of the variables and do not give leeway for unexpected costs, which almost always occur. With a strong understanding of retail store construction costs, an estimated budget can be easier to understand and evaluate the costs.
If you’re looking for a shopping center construction company we’re here to help you plan, design and build your project. Call us today to see how our team of experts can help you make your project a reality: