Accompanying this report are tables and charts based on RSMeans’ measures of dollar-per-square-foot construction costs. The results for 25 major cities are shown for four small commercial types of structure. Means has updated specifications with regard to its building cost models for an office building (one story) and a fast food restaurant. For this reason, it is not valid to directly compare this year’s figures with last year’s in those two categories. That is why the percentage change columns read “not applicable”.

Ranking by Expense − Fast Food Moves Upscale

Among the four categories of buildings shown in the table and graphs, it is most expensive to build a fast food restaurant. The second-most expensive is a one-story office building. Third spot goes to a day care center. In last position, at about half the cost of a fast food restaurant, is a convenience store. Fast food restaurants have clearly moved upscale when it comes to the dollar-per-square-foot cost to build them. 

New York is the Most Expensive; Cities in the South are Least Expensive

New York has the highest dollar-per-square-foot construction costs in the country. San Francisco, Boston, Chicago and Philadelphia round out the top five. Relatively low-cost cities are mainly in the southeast and southwest, including Miami, Atlanta, Phoenix, Houston and Dallas.

The nation’s capital, Washington, is in the low mid-range for construction costs among the 25 cities considered in the table and graphs. The same holds true for Pittsburgh and Denver. Seattle, Detroit and St. Louis are in the upper mid-range. In California, dollar-per-square foot construction costs in Los Angeles and San Diego are between 12% and 15% lower than in San Francisco.

Some City Comparisons

It is interesting to make some regional comparisons. It now costs about 28% more to build in Chicago than in Atlanta. The relationship is about the same (26%) between higher-cost Philadelphia and lower-cost Miami. The mark-up in New York, the most expensive city among the 25 shown, and Winston Salem, the least expensive, is slightly more than two-thirds or 70%.

Percentage Changes Restrained by Recession

The year-over-year percentage change calculation is valid in the two categories for which specifications have been kept the same. The 25-city average for a day care center is +1.3%, while for a convenience store, it is +2.0%. With the economy in the grip of recession, construction costs are being restrained as well. Keep in mind that the latest change in the Consumer Price Index, for June 2009 versus June 2008, was -1.4%.

These charts and tables were abstracted from RSMeans cost data publications for the A/E/C industry. For more information about RSMeans Square Foot Cost Guide and RSMeans CCI (Construction Cost Index), which indexes square foot costs for cities in the U.S. and Canada, visit the online bookstore at www.rsmeans.com and click on cost data publications (or call 1-800-448-8182).

"n/a" means not applicable. Recent adjustments to specifications mean that year-over-year percentage changes will not be valid in 2009.

Data source: Reed Construction Data – RSMeans/Charts: Reed Construction Data – CanaData

Office Building (One Story) Construction Cost:
July 2009 Ranking of Major U.S. Cities

Data source: Reed Construction Data – RSMeans (www.rsmeans.com).
Chart: Reed Construction Data – CanaData.

Day Care Center Construction Cost:
July 2009 Ranking of Major U.S. Cities

Data source: Reed Construction Data – RSMeans (www.rsmeans.com).
Chart: Reed Construction Data – CanaData.

Convenience Store Construction Cost:
July 2009 Ranking of Major U.S. Cities

Data source: Reed Construction Data – RSMeans (www.rsmeans.com).
Chart: Reed Construction Data – CanaData.

Fast Food Restaurant Construction Cost:
July 2009 Ranking of Major U.S. Cities

Data source: Reed Construction Data – RSMeans (www.rsmeans.com).
Chart: Reed Construction Data – CanaData.