Joasis (and Others) How Much Would This Building Cost In Your Area?

Mike Finley

I'm still sniffing around for a warehouse, I'm just very reluctant to rent and really want to buy something but boy is it expensive. I've found a piece of crap building on a nice lot that could work out where the original building is torn down and there is plenty of room to build bigger on the lot. I know what the lot would cost for me to buy but the building is a head scratcher.

A lot of you guys like steel buildings so I wonder if that is the way to go. I found a similar building to what might work so I want to post some pics and just see what the conensus is to build something like this. I'm not talking costs but what retail would be because I don't think I'm going to get involved in building this myself.

Take a look see and what do you think?

The building is 40'x80'.

Mike Finley

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Mike Finley

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joasis

That building, complete with wiring, in my area, would be $20 a sq/ft, plus lot. whatever. The bare cost, in other words, what I start my bid at is around $13 a sq/ft. and then add insulation, overhead doors, bid from the electrician ($4 a sq/ft depending on fixtures) and plumbing.....if you are looking at it to buy, real estate value there will dictate price as opposed to replacement cost as it would here.

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Mike Finley

Thanks Jay, I was kind of figuring about 45-50 sq foot here including the pad and everything.

2 other things - you don't see anything unusual in the pictures of that building? Nothing shouting out more money for anything there? A 40 foot open span is nothing unusual in a steel building?

joasis

Are you contemplating buying that building? Or do you want one just like it?

Steel packages, like the one that would be that building, clear span 40 x 80 with half frame endwalls, look like a 4/12 pitch, would be $7 a sq/ft delivered in your area. That would include vinyl back 4 inch insulation and the personnel doors. I don't know how you get hit with concrete, but considering the footing depth of piers, guess at $4 a sq/ft. Plumbing you would know by your market....the infrared heaters would be of no value on the appraisal, as would the evaporative cooler on the roof. The electrical looks very basic...oh yeah, the erection for that building (labor) would be $4 a sq/ft as well...and there you have it.

If you choose to build that building, or one like it, the steel company I used to work for sold a lot of buildings to that area, and I can get you a deal on a kit.

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Mike Finley

I was thinking of buying this building, but I'm exploring some other options and I'm trying to figure things out.

This building and the property (the pictures you see here ) is seliing for $415,000, the property I am looking at is a much bigger property for about $400,000 but has a piece of crap 2000 sq/ft block building on it. The 2nd properties value is it's location and the size of it, (fenced yard).

What I want is the 2nd property because of the size of the land and build a building like this one on it. (Or a bigger building (probably at least 6000 sq ft) , divided it up into 3 or 4 spaces and rent them out)

It sounds like that would cost about $600,00-$700,000.

joasis

I don't know the variables of your market for your subs, concrete, etc. What I do know is the steel side, and the pricing here is pretty much the same as it would be there. An ideal building would be as square as you can get for efficiency of space, and then divide into fourths. Of course, being in snow country, the greater width will come at a penalty....so a compromise would be say, a 40 wide by 160 long....divided into units like a strip building. A building like that would run about $55,000 for the steel, and then use the above numbers to get there.

I take it the RE market is still strong on commercial property there?

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Mike Finley

Yeah, it's still strong, but like any real estate it's about location, we've got several areas here that are going to or are in various stages of the process of redevelopment, old factory locations or warehouse districts being torn down and converted into mixed use effects values alot as does location to easy highway access to get around town.

There are several ways for me to go with this property, the most pie in the sky would be to buy it and immediately tear down the building there and build a 6000 sq footer, divide it, rent out part of it and use the rest, but that's a big financial commitment. I could also buy it and use the existing crap building for awhile and do the tear down later.

Not really sure about any of it at this time, the economy is so shaky right now.