Ground-Up Commercial Construction Costs | Why the GC's Number Is Half Your Real Budget in 2026

Añadido: 2026-05-17

[00:00:00]A GC's price is one line item out of 30.

[00:00:03]Here's the mistake most residential investors make on their first commercial deal. They get a number from a general contractor and think they have a project budget. They have one line item out of 30, in fact. An architect walked through this in a meeting I sat in on. A buyer asked the GC, "What does it cost to build a 20,000 square foot retail building?" GC gives a number. Buyer plugs it into the pro forma. The problem? That number is just the vertical. It doesn't include the architecture, the parcel maps, it doesn't include civil engineering, doesn't include any utility connections, offsite improvements, landscape architecture, the arborist report on existing trees, it doesn't include the 20 to 30 separate permit and impact fees, traffic, school, urban, forest, fire. The list goes on. On a single Dutch Bros project, the architect mentioned roughly 30 line items in permitting alone. If you're stepping out of residential into ground-up commercial, the construction number is maybe half of your true all-in cost, sometimes less. If you're thinking about your first ground-up commercial project and want help building a real budget, call or text me at 916-513-0217 or book a call at commerciallandluxury.com.