Developer Newbie Question?
When building a commercial building what percentage of total unit cost is land cost? for most of you?
When building a commercial building what percentage of total unit cost is land cost? for most of you?
Tough question to answer- depends on the location of the property, it's approval status, zoning, etc. I've seen projects where the land cost was only 10% of the total costs, and projects where the land cost was 60% of the total costs. Do you have more specifics on a particular deal?
Bob
I can give you a concrete example, but agree with above. I am building a 14,000SF strip mall. $90/SF all but A and D. A and D is $175,000. My land cost in this deal was very low.