PMT Forum

PMT Forum's MOST POPULAR Discussion Boards => Property and Real Estate => Topic started by: ofw_investor on Feb 24, 2014, 09:46 AM

Title: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: ofw_investor on Feb 24, 2014, 09:46 AM
Can someone provide a rough estimate for building a 6 or 7 storey commercial building on a 240 sq m lot?
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: pulubing_palaboy on Feb 24, 2014, 11:37 AM
based on information you provided, you will only get a very rough estimate. what good will that be to you?

how many units on each floor?
elevators?
escalators?
bathrooms for each unit?
provisions for communications equipment?
floor/wall finishes?
etc.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: ofw_investor on Feb 24, 2014, 12:05 PM
Thanks for your response, p_p.

At this stage, I'm only after a very rough estimate to see if I can afford it (along the line of what would be the cost per sq mtr).

Ex. 240 sqm X 7 storey X 10,000 ?? php/sqm = 16.8 M ?? (Is 10K /sqm enough?)
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: n5110 on Feb 24, 2014, 12:34 PM
Yung 10K price range for structural pa lang. 15-20K/ sq.mtr pag finish. of course depende pa rin sa level ng finish na gusto mo.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: ofw_investor on Feb 24, 2014, 12:39 PM
Thanks, n5110

Is 20K /sq mtr a good finish already?  Is that the total cost or materials only?

Mga magkano kaya ang rental sa isang buong floor (240 sq mtr)?
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: yllor on Feb 24, 2014, 12:56 PM
hindi po pwede gamitin yung 240 sq m na lot para sa multiplier na 15-20k/month na initial estimate.

gagamitin po yung 15-20k/m² sa total floor area ng building.

let say out of 240 lot area 190 lang yung occupied ng building tapos multiply po natin ng 7 floor kung pareho lang ang area per floor.

so initially, 190 x 7 = 1,330.00m² x Php20,000.00/m² = Php26,6000,000.00 :hihi:

laki ng puhunan mo kung wala ka financing galing sa bank or investor.

rental? well, depende sa location.

consider mo din maintenance ng building after construction lalo na sa common utilities, common areas at facade/ exterior wall.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: ofw_investor on Feb 24, 2014, 01:16 PM
Thanks, yllor.

Commercial lot sya na 240 sq mtr.  Meron na firewalls ng 2 adjacent building sa isang side at sa likod. balak ko i-maximize ang building sa lote kaya i-firewall ko ang isang pang side.  Ibig mo sabihin hindi ko puede gawin to at mababawasan ang area ko ng 50 sq mtr?
City center siya. ang prospect kong tenant isang school na balak mag expand galing sa katabing building.  Magkano kaya maipa-rent ang isang buong floor?
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: yllor on Feb 24, 2014, 01:54 PM
i just assume that the 50m² will be a free space (frontage, parking or landscape). depende pa rin naman sa design ng building.

you can use the 240m² footprint of building for your computation anyway as estimate data for estimated construction cost.

rental: better survey the area where your property is located.

rental fee mostly dictates the location, amenities and purpose of the building, terms of agreement and duration of rental period.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: n5110 on Feb 24, 2014, 02:27 PM
i agree with yllor. hinde po ako contractor pero i have several jobs sa mga contractors kaya may idea ng konti.

kung commercial space pala at may prospective clients ka na madali mo na ma pproject. better canvass kung magkano ang going rate sa rental ng space. from there magkaroon ka ng idea of your projected income. pag na renta pa yan ng mga food stores like jolibee jackpot ka lalo.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: wilch23 on Feb 24, 2014, 07:25 PM
May I?

First you need to find out the required set back on your frontage. Sa local govt eto, kung main hiway then commercial bldg, baka 5meters set back yan.

2nd, Mababa ang 15thou per sqm, Kasi you need elevator(s), fire escape, sprinkler system (medyo mahal din), fire exits, water cistern/tank, pumps, maybe genset, electric sub-meters (mahal wiring ng commercial), water sub meters(?). I'm only talking about the structural part.

Consider also kung roof deck (mas mahal) ka or regular roof (usually GI long span prepainted).

3rd, finishing - sky is the limit, pero minimum will depend on how many units for rent. How many bathrooms? Dito ka pwede tipid (8 thou minimum siguro).

4th, Permits and fees (marami rin), Meralco ba eto (madugo rin makabit ng electricity - 3phase bec of elevator).

My advise is get a Project Manager then architect then contractor. Malaki ma-save mo if you have a PM, Pati sakit ng ulo.

Just started a 5 level commercial structure (Tanza, Cavite) on 960sqm lot, kaya fresh data eto. Where is your lot located?
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: kikay_trader on Feb 24, 2014, 10:13 PM
hindi po pwede gamitin yung 240 sq m na lot para sa multiplier na 15-20k/month na initial estimate.

gagamitin po yung 15-20k/m² sa total floor area ng building.

let say out of 240 lot area 190 lang yung occupied ng building tapos multiply po natin ng 7 floor kung pareho lang ang area per floor.

so initially, 190 x 7 = 1,330.00m² x Php20,000.00/m² = Php26,6000,000.00 :hihi:

laki ng puhunan mo kung wala ka financing galing sa bank or investor.

rental? well, depende sa location.

consider mo din maintenance ng building after construction lalo na sa common utilities, common areas at facade/ exterior wall.
How about po kaya ang mga townhouses? I have a 250 sqm lot in Paranaque which I am planning to develop into 4-unit townhouse (2 or 3 storey) na may tig-50 sqm allocation and remaining 50sqm as allowance for frontage.. Pwde na ba ang P25k per sqm for good finish? Kung 2-storey each mga P2.5M each x 4units = P10M plus P1.8M for the land, mga P12M lahat. Competitive na ba ang P4M na selling price per townhouse unit sa Paranaque? I'm anticipating a rise in the valuation of properties doon once fully-operational na lahat sa Entertainment City.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: wilch23 on Feb 25, 2014, 12:16 AM
Pwede ang 25thou/sqm for residential townhouses. But that is only for the construction of the units.

You have to add Meralco, permits and fees, Maynilad/MWC, etc.

As for the max size of each unit, you will need to check with the city govt re min setback.

Be prepared to wait a while (maybe a long while) before ma-sold out units mo.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: kikay_trader on Feb 25, 2014, 08:19 AM
Thank you mr wilch!

Mga magkano ibubudget for the utilities?

Actually mga P5M lang maaafford ng family ko na mapahiram sa akin ng almost zero interest,  the rest baka sa bank na hiramin pero nalalakihan ako sa interest. Iniisip ko rin half na lang muna ang ipagawa if ever (2 units), pag may nabenta na saka na lang simulan uli yung other 2, at least P6M lng ang actual capital instead of P12M. Pag ganun ba panibagong apply na naman ng mga permits?

Yung mga housing projects sa cavite gaya ng camella, how much do you think ang cost per sqm nila? Hindi kasi maganda, pakyawan kumbaga, pati materyales tingin ko substandard but they sell above P2M? Parang di worth it... But at least you can alter and improve later on, unlike sa condo na very limited ang pwede mong ipagawa.

Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: wilch23 on Feb 25, 2014, 09:01 AM
Thank you mr wilch!

Mga magkano ibubudget for the utilities?

Actually mga P5M lang maaafford ng family ko na mapahiram sa akin ng almost zero interest,  the rest baka sa bank na hiramin pero nalalakihan ako sa interest. Iniisip ko rin half na lang muna ang ipagawa if ever (2 units), pag may nabenta na saka na lang simulan uli yung other 2, at least P6M lng ang actual capital instead of P12M. Pag ganun ba panibagong apply na naman ng mga permits?

Yung mga housing projects sa cavite gaya ng camella, how much do you think ang cost per sqm nila? Hindi kasi maganda, pakyawan kumbaga, pati materyales tingin ko substandard but they sell above P2M? Parang di worth it... But at least you can alter and improve later on, unlike sa condo na very limited ang pwede mong ipagawa.

It might be difficult to do. Kasi you never know when it will sell, paano kung 6 months na di pa rin sold? Remember you'll be paying interest on your loans. Ours kasi, we already have tenants lined up, so medyo covered na overhead costs once completed (loans, utilities etc) - rental lang kami.

Close to my place, QC near Roces ave, may townhouses for sale in three different projects. One is quite nice and big units, gated pa (newest eto). 2nd is mid-level and much smaller pero designed with main gate also (natapos just before the 1st project). The 3rd project (earliest to natapos) has no gate, tabi tabi sa road, looks like even smaller units.

One year ago pa completed na lahat, but I think only 2 units sold as of now, duon pa sa mas mahal (1st project around 10M each ata). Didn't ask prices of the other 2 projects. But sure ako the mid-level wala pa nakatira, wala rin nagaayos (unsold?), i pass by it very often.

Sa low cost housing, mura lang cost kasi volume sila, but selling is mahal. Mas malaki kita nila dyan.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: richpulubi on Feb 27, 2014, 04:26 PM
May I?

First you need to find out the required set back on your frontage. Sa local govt eto, kung main hiway then commercial bldg, baka 5meters set back yan.

2nd, Mababa ang 15thou per sqm, Kasi you need elevator(s), fire escape, sprinkler system (medyo mahal din), fire exits, water cistern/tank, pumps, maybe genset, electric sub-meters (mahal wiring ng commercial), water sub meters(?). I'm only talking about the structural part.

Consider also kung roof deck (mas mahal) ka or regular roof (usually GI long span prepainted).

3rd, finishing - sky is the limit, pero minimum will depend on how many units for rent. How many bathrooms? Dito ka pwede tipid (8 thou minimum siguro).

4th, Permits and fees (marami rin), Meralco ba eto (madugo rin makabit ng electricity - 3phase bec of elevator).

My advise is get a Project Manager then architect then contractor. Malaki ma-save mo if you have a PM, Pati sakit ng ulo.

Just started a 5 level commercial structure (Tanza, Cavite) on 960sqm lot, kaya fresh data eto. Where is your lot located?

Thanks for sharing!  This is very useful.

But where do you get a 'project manager?'
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: wilch23 on Feb 27, 2014, 04:40 PM
Our PM was referred to us by friends and relatives in the construction business. Usually they do work for commercial projects, pero din for residential pag high end project.

The fee is a few hundred thousand pesos minimum, so not cost effective for small project. Reasonable naman if you think about it, may assigned office person for paper works (schedules, reports, billing audit, supplies, etc) and a full time engineer on site to make sure materials used are of right quantity and quality. The engr will also inspect the quality of work of the contractor.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: richpulubi on Feb 27, 2014, 04:45 PM
Our PM was referred to us by friends and relatives in the construction business. Usually they do work for commercial projects, pero din for residential pag high end project.

The fee is a few hundred thousand pesos minimum, so not cost effective for small project. Reasonable naman if you think about it, may assigned office person for paper works (schedules, reports, billing audit, supplies, etc) and a full time engineer on site to make sure materials used are of right quantity and quality. The engr will also inspect the quality of work of the contractor.

I've always wanted to do what you're doing. Pero takot lang ako.  I constantly search on ayosdito or sulit for existing commercial buildings or lots to build on...pero nag ba back out ako sa last minute. 

But you inspire me.  And so, hopefully I can follow your footsteps...
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: n5110 on Feb 28, 2014, 01:21 AM
@wilcg23 ganda ng mga inputs nyo. Do you always build from ground up? Then rentals hanggang mag ROI? Ito din ang target ko someday kung makakuha ng magandang prospect sa foreclosed bank assets.
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: jomor on Feb 28, 2014, 05:08 AM
I have questions po ofw_investor : ano po ba ang shape ng lupa nyo? ... ilang meters ang frontage then depth para sa 240 sqm area? is this an inner lot or corner lot?... sang lugar po ito? ... it is important to know building plan regulations para ma-consider ang setback or kung allowed ng building official yung walang setback... then consider also yung common area (in sqm) at livable space (in sqm) per floor ... this way magkaroon ng idea of an estimate per sqm per floor... plus equipments attached to the building like gensets, elevator, water tank, cistern, etc... sa rental rates, consider simple interest rates: total development cost multipled by rate of interest then divide by 12 to get monthly rental... then divide by # of sqm per rental area per floor... medyo iba ang magiging rental rate per floor, the higher the floor the lower rate per sqm...
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: n5110 on Feb 28, 2014, 09:10 AM
... medyo iba ang magiging rental rate per floor, the higher the floor the lower rate per sqm...

ah ganun pala. is this also true kung residential ang ipaparent? like studio type apartment na multi level?
Title: Re: Question: Rough estimate cost for building a 6 or 7 storey commercial building
Post by: yllor on Feb 28, 2014, 05:05 PM
ah ganun pala. is this also true kung residential ang ipaparent? like studio type apartment na multi level?

sa commercial unit, kung higher level ang location ng rental space, mas mura kasi mas kaunti ang traffic o ma tao na pupunta. tamad na kasi pumunta sa itaas ang mga mamimili dahil na rin sa mga bitbit. pansinin nyo na alng yung mga mall, kung wala elevator o escalator tatamarin mga tao na pumunta sa mga upper level.

sa residential tower, mas mahal ang higer level dahil na rin sa view lalo na sa mga hig-rise residential at mga penthouse o sky-unit. pero kung mid-rise apartment at magkakatabi pa.. siguro naman wala kang add-on para sa sale rental mo nun.. yun bang pagtanaw mo ng bintana ng iyon unit eh pader ng kabilang building pa rin nakikita mo.. :hihi: