Building Information Database

Introduction

Welcome to Location Group's Building Information Database.

On many occasions, we receive calls from Real Estate Agents who need help to understand costs relating to building, refurbishment and development when they are pitching for new business.  The information provided below will enable you to have a general understanding of costs so you are able to take a property owner through the varying scenarios of retaining, selling or redeveloping a property.  What we have compiled is a very "broad brush" range of numbers that you can confidently use when you get that difficult question like "what would it cost me to reseal my yard?" or "how much a square metre is it to build an office?"

We hope you find this a useful and informative tool.  The budgetted estimates that we have provided will be regularly updated in consultation with Kingston Partners, Quantity Surveyors, and are exclusive of GST.

New Building Costs

General Rates
Floor Coverings:	Heavy duty commercial grade synthetic carpet.	$45 - $60/m2
	Heavy duty commercial grade synthetic modular carpet tiles.	$60 - $75/m2
	2mm thick commercial grade sheet vinyl.	$65 - $80/m2
	Ceramic or stone floor tiles ($30/m2 supply).	$110 - $125/m2
Suspended Ceilings:	Exposed grid suspension system with 15mm thick standard acoustic ceiling tiles.	$30 - $45/m2
	Concealed grid suspension system with 13mm thick Gib. Standard ceiling linings.	$45 - $60/m2
Air Conditioning Services:	Medium standard air conditioning to commercial office.	$250 - $350/m2
	Medium standard air conditioning to commercial retail.	$175 - $275/m2
Fire Services:	Fire sprinkler and smoke detection system to commercial office and retail.	$45 - $55/m2
Electrical Services:	Medium standard power and lighting services to commercial office and retail.	$100 - $150/m2
Exterior Pavement:	Medium duty asphaltic concrete car park pavement.	$40 - $55/m2
	Medium duty concrete pavement.	$80 - $100/m2
	Concrete kerb and channel.	$40 - $55/lm
Building Costs
Building costs are based on Gross Floor Areas and costs exclude exterior works, sub-division costs, special requirements, tenant fitout and FF&E.
Commercial Offices:	Low rise office with standard level of finish including HVAC, lifts and sprinklers.	$1,750 - $2,250/m2
	High rise office with medium level of finish including HVAC, lifts and sprinklers.	$2,250 - $2,750/m2
Industrial Offices:	Low rise office with low standard level of finish excluding HVAC, lifts and sprinklers.	$1,250 - $1,750/m2
Industrial Warehouse:	Single storey industrial warehouse or factory with a 6 to 8m stud, excluding HVAC and sprinklers.	$600 - $900/m2

Refurbishment Projects

The cost of refurbishment projects can obviously differ due to the scale of the refurbishment.  Using square metre rates from the general category provided above will give you a reasonable concept of price.  Please note that the general rule is that refurbishments take longer and cost more than your initial expectations so the need to budget for adequate contingencies is important.

Successful refurbishment projects are based on good design and creative use of existing structures.  One of the best initial steps we have found is to ask the question "if I had a bare site, would I locate the existing buildings on the site in the same position?"  The answer can often assist you in determining whether to go with the existing structures, or alternatively demolish and start again.

 

Professional Fees

As a general rule, professional fees on new buildings are approximately 10 - 12% of the construction price.  Professional fees include:

• Architectural
• Engineering
• Surveying
• Geotechnical
• Quantity Surveying
• Building & Resource Consent Fees
• Project Management Fees
• Fire Reports
• Arborist Reports
• Traffic Reports
• Planning

On refurbishments, such fees can be slightly higher due to the added complexity and time involved.

 

Development Levies & Financial Contributions

Different Local Authorities adopt different regimes when it comes to this issue and so its best to either obtain advice and/or interpretation from an experienced Planning Consultant or contact the relevant Local Authority directly.

 

Time Frames

Stage 1: Concept Design

This stage is when you engage an architect and project team and come up with a basic bulk & location design or refurbishment concept for your property.

Time Frame:

3 - 4 weeks.

Stage 2: Preliminary Design, Resource Consent Application

This stage is when you prepare an application for resource consent for your project.  This will involve more detailed plans and whatever professional reports your planner advises are required e.g. geotechnical, traffic etc. (see above).

Time Frame:	4 - 6 weeks for preliminary design.
	4 - 6 weeks for consultants' reports and completion of RC application.
	6 - 12 weeks for consent (on a non notified basis).

Stage 3: Developed Design

Once the resource consent application is moving through the Local Authority's processes, developed design can be progressed to the point of lodge said plans for building consent.

Time Frame:	4 - 16 weeks for design.
	4 - 8 weeks for building consent approval.

Note: some of these time frames can be overlapped to save time.

Stage 4: Construction

Industrial office / warehouse: 20 - 24 weeks.

Commercial office: 44 - 70 weeks (as a general rule on bigger commercial projects $1 million per 1 month of construction i.e. $15 million = 15 months of construction).

Stage 5: Code of Compliance & Titling (if a strata title development)

Time Frame:

4 - 10 weeks.

 

Holding Costs

Understanding holding costs is an area that analysts of a project's viability commonly get wrong.  The cost of the development should be broken into equity and first mortgage debt (and second mortgage debt if appropriate).  All of these components should have an interest rate cost applied.  Often when property owners analyse a development's viability, they fail to recognise that a return on their invested equity is a more accurate way to ascertain the true financial return from a project.

 

Selling & Leasing Costs

In every project these costs need to be recognised and accounted for:

• Marketing
• Leasing Commissions
• Sales Commissions
• Rent Holiday
• Legal
• Valuations

Conclusion

The above guidelines have been provided to assist you at a "high level" in understanding development costs.  However, each potential project / opportunity presents its own unique characteristics and that is when there is no substitute for experience.

Location Group can sit down with you (and your client if appropriate) to provide a more in-depth analysis of the nuances of each project and the positive / potential pitfalls that need to be weighed up in any substantial investment / divestment decision.

So please contact either Roy Richardson, Chris Davies or Mark Weipers for a no obligation discussion on your latest idea or prospect.

Last Updated 24.09.10