Commercial Construction Cost per Square Foot in Texas
A no-fluff guide to what commercial construction actually costs in Texas in 2026 — broken down by building type, finish level, and the factors that drive pricing. Built for developers, business owners, and anyone who wants real numbers before talking to a contractor.
Last updated: July 2026 · Based on active bids and completed projects in DFW, Houston, Austin, and San Antonio markets
If you are planning a commercial build in Texas — whether it is a 5,000 sq ft retail shop in Plano, a 40,000 sq ft distribution warehouse near the I-35 corridor, or a Class A medical office in Houston — the first question is always the same: “What is this going to cost per square foot?”
The honest answer is that there is no single number. Per-square-foot cost depends on building type, finish level, site conditions, current material prices, and where you are building. A basic tilt-wall warehouse shell runs under $85/sq ft; a fully built-out restaurant can push past $550/sq ft. Both are “commercial construction in Texas.”
This guide breaks down real cost ranges by building type, walks through the seven factors that drive pricing the most, and includes a checklist of pre-construction costs that catch people off guard. Everything here is based on active 2026 bids and completed projects — not generic national averages.
Commercial Construction Costs by Building Type
All-in hard costs including general conditions, contractor overhead and profit. Does not include land acquisition, soft costs (A&E, permits, financing), or FF&E. Texas Triangle pricing as of July 2026.
Office (Class A & B)
Professional office space with finished interiors, private offices, conference rooms, reception areas, break rooms, and restrooms. Class A includes premium finishes and higher-end mechanical systems; Class B uses mid-range materials while remaining durable and code-compliant.
| Scope / Tier | Low Range | High Range | Typical | What's Included |
|---|---|---|---|---|
| Class B office — shell + basic interior | $180 | $260 | $210–$240 | Steel frame, concrete slab, exterior envelope, drop ceiling, basic HVAC, standard lighting, carpet squares, painted drywall, two restrooms |
| Class A office — full buildout | $280 | $420 | $320–$380 | Everything in Class B plus premium finishes, glass office fronts, executive conference room, upgraded HVAC zoning, architectural lighting, custom millwork, lobby with stone/tile |
| Medical / dental office fit-out | $350 | $550 | $380–$480 | Specialized plumbing (vacuum, gas lines), lead-lined walls if radiology, medical-grade flooring, exam room casework, accessible restrooms, higher HVAC fresh-air requirements |
Industrial & Warehouse
Clear-span structures for manufacturing, distribution, cold storage, or flex space. Cost swings heavily on whether the space needs climate control, overhead cranes, dock equipment, or specialized mechanical systems.
| Scope / Tier | Low Range | High Range | Typical | What's Included |
|---|---|---|---|---|
| Basic warehouse / distribution center | $45 | $85 | $55–$75 | Tilt-wall or steel-frame shell, concrete slab, minimal office (5–10% of footprint), basic electrical, dock doors, TPO roof, no HVAC in warehouse area |
| Manufacturing / light industrial | $95 | $175 | $120–$155 | Heavier slab for equipment loads, compressed air lines, 3-phase power, crane runway if needed, exhaust/ventilation, larger office buildout, fire suppression |
| Cold storage / food-grade facility | $220 | $400+ | $260–$350 | Insulated metal panels (IMP), refrigeration systems, USDA-compliant finishes, floor drains with solids interceptors, wash-down capable, HACCP layout requirements |
Retail & Mixed-Use
Standalone retail buildings, strip centers, restaurant shells, and ground-floor retail in mixed-use projects. Costs vary dramatically with tenant finish level — a vanilla shell versus a fully built-out restaurant can swing $150+/sq ft.
| Scope / Tier | Low Range | High Range | Typical | What's Included |
|---|---|---|---|---|
| Shell retail / strip center | $110 | $180 | $135–$165 | Concrete tilt-wall or CMU, storefront glass systems, basic electrical panels, stub-outs for plumbing, HVAC curbs only, TPO roof, parking lot and site work |
| Standard retail buildout | $175 | $275 | $200–$250 | Finished interior with storefront, sales floor lighting, fitting rooms, stockroom, break area, two restrooms, basic HVAC distribution, painted drywall, VCT or LVT flooring |
| Restaurant / food-service fit-out | $300 | $550+ | $350–$480 | Commercial kitchen with hood suppression, grease interceptor, walk-in cooler, ANSI/NSF finishes, dining room buildout, bar with plumbing, dedicated HVAC make-up air, Type I hood |
What Drives Commercial Construction Cost
Six factors explain the majority of cost variation between otherwise similar projects. Understanding these helps you make smarter trade-off decisions before design is locked.
Site conditions & land prep
Sloped lots, poor soil, high water tables, or rock can add $15,000–$150,000+ before the first wall goes up. Geotechnical reports and civil engineering are not optional — they define your foundation design and stormwater plan. In Texas, expansive clay soils (common in DFW and Central Texas) often require engineered fill or pier foundations, which can add $8–$25/sq ft to the slab alone.
Building height & structural system
Single-story tilt-wall costs $45–$85/sq ft for the shell. Go to two stories or add a mezzanine, and you introduce structural steel that pushes costs into the $95–$140/sq ft range. Clear-span requirements (no interior columns) add about 15–25% to the structural steel package. In the I-35 corridor, wind loads per IBC 2024 also affect bracing requirements and steel tonnage.
Mechanical, electrical & plumbing (MEP)
MEP often represents 25–35% of total hard costs. Office HVAC runs $18–$35/sq ft. A restaurant Type I hood system alone can cost $45,000–$90,000. Electrical service size matters enormously: going from 400A to 2,000A can add $20,000–$50,000 just in transformer and switchgear. Sprinkler systems are now required in virtually all Texas commercial buildings under IBC 2024.
Interior finishes & buildout level
A vanilla shell with exposed structure, sealed concrete, and minimal partitions might cost $15–$25/sq ft for interior. A fully built-out Class A office with glass fronts, custom millwork, architectural lighting, and acoustic treatments runs $120–$180+/sq ft. The delta between 'tenant-ready' and 'white box' alone is often $30–$60/sq ft.
Permitting, fees & municipal requirements
Texas cities vary widely. Dallas plan review fees run approximately 0.5–1% of construction value, while smaller suburbs may be lower. Impact fees for new water/sewer taps can exceed $15,000 in growing suburbs like Prosper or Celina. Stormwater pollution prevention (SWPPP) compliance is mandatory statewide. Expect 6–12 weeks for plan review in DFW cities, longer if rezoning is required.
Material & labor market conditions (2026)
Steel prices have stabilized somewhat compared to the 2021–2023 volatility but remain 18–25% above 2019 levels. Concrete costs in Texas have risen about 4–6% year-over-year driven by aggregate transportation and cement supply. Skilled labor — particularly MEP trades, finish carpenters, and superintendents — remains tight in the Texas Triangle, with labor costs up 3–5% annually. Long-lead items like switchgear (20–40 weeks) and rooftop units (12–24 weeks) must be ordered early to avoid schedule delays.
Cost-Factors Checklist
These are the pre-construction costs and due-diligence items that shape your budget before the first scoop of dirt moves. Missing any one of them can mean six-figure surprises later.
Geotechnical / soils report
Non-negotiable. Determines foundation type — pier and beam vs. slab-on-grade vs. engineered fill. In Texas expansive clay zones, skipping this can lead to slab heave and $50K+ remediation.
Site survey & ALTA boundary
Identifies easements, flood zones, utility conflicts, and setbacks. ALTA surveys are required by most commercial lenders. Budget $2,500–$7,000 depending on parcel size and complexity.
Zoning & land use verification
Confirm permitted uses, parking minimums, height restrictions, landscaping mandates, and sign ordinances. Rezoning or a Specific Use Permit (SUP) can add 3–8 months. Municipalities like Plano and Frisco have detailed form-based codes.
Civil engineering & stormwater plan
Required for site development permits. Includes grading, drainage, detention/retention ponds, and SWPPP (Stormwater Pollution Prevention Plan). Engineering fees: $12,000–$45,000 for typical commercial lots.
Architectural & structural drawings
Stamped by Texas-licensed professionals. Design fees typically run 5–8% of construction cost for full-service A&E. Structural engineering alone: $0.80–$2.00/sq ft depending on complexity.
MEP engineering & energy code compliance
Texas adopted IECC 2021 with amendments. COMcheck energy modeling is required for permit. MEP engineering runs $0.70–$1.50/sq ft combined. Include lighting photometrics for parking lots.
Fire protection / sprinkler design
IBC 2024 now requires sprinklers in virtually all new commercial buildings in Texas. Sprinkler design + installation: $2.50–$5.00/sq ft. Fire alarm system: separate scope.
Utility coordination (water, sewer, electric, gas)
Determine available capacity, tap fees, and extension costs. New transformer from Oncor can take 16–32 weeks. Oversized water meters for restaurants add $5,000–$15,000.
Traffic impact analysis (if required)
Municipalities may require this for projects over certain square footage or trip-generation thresholds. Engineering cost: $8,000–$25,000. Can trigger off-site improvements you pay for.
Environmental assessment (Phase I)
Required by most lenders. Identifies recognized environmental conditions (RECs) from prior land use. Phase I ESA: $2,800–$5,000. If issues found, Phase II testing adds $5,000–$25,000+.
Builder's risk & liability insurance
Builder's risk covers the project during construction. General liability, workers comp, and umbrella coverage required. Budget 1.5–3.5% of hard costs. Texas does not require contractor licensing at the state level, but verify local registration requirements.
Contingency reserve
Industry standard is 5–10% of hard costs for new construction, 10–15% for renovations. Unforeseen conditions (underground utilities, soil surprises, scope gaps) are almost guaranteed — the question is how much, not if.
Owner-supplied items & FF&E budget
Furniture, fixtures, and equipment are typically outside the GC contract. IT/low-voltage infrastructure (cabling, access control, cameras) is often owner-coordinated. Budget FF&E separately at $15–$75/sq ft depending on use.
Long-lead procurement schedule
Switchgear (20–40 weeks), rooftop HVAC units (12–24 weeks), custom storefront systems (10–16 weeks), elevators (16–30 weeks). Late orders = schedule delays. Order at permit submission, not after permit issuance.
This is not an exhaustive list — each project has unique requirements. Use it as a starting point for budgeting conversations with your contractor and design team.
Frequently Asked Questions
Quick answers to the cost questions we field from Texas developers and business owners every week.
Common Cost Questions
Straight answers to the questions Texas developers and business owners ask most
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