Texas commercial construction costs per square foot vary significantly based on building type, location within Texas, and specific project requirements. Understanding these costs is essential for planning, budgeting, and ensuring efficient resource allocation. This guide provides a detailed breakdown of commercial construction costs across Texas, including key cost drivers and variations for 2025.
Average Commercial Construction Costs Per Square Foot in Texas (2025)
In 2025, the average construction cost per square foot in Texas spans a broad range due to factors such as the project’s location within the state, building specifications, and design complexities. Below is a breakdown of typical per-square-foot costs by building type.
Cost Range by Building Type (Texas)
| Building Type | Cost per Square Foot |
|---|---|
| Single-story Office | $305 – $445 |
| Mid-rise Office | $355 – $880 |
| High-rise Office | $460 – $1045 |
| Government Administrative | $435 – $870 |
| Museum/Performing Arts | $680 – $1340 |
| Medical Office Buildings | $460 – $1050 |
| Recreation/Gymnasiums | $365 – $710 |
| Warehouse | $225 – $315 |
| Light Industrial Warehouse | $245 – $335 |
| Three-star Hotel | $500 – $640 |
| Five-star Hotel | $690 – $915 |
| School Facilities | $320 – $430 |
| Shopping Mall | $495 – $645 |
| Neighborhood Strip Center | $375 – $510 |
| University Classroom Buildings | $590 – $770 |
| Laboratory Buildings (University) | $775 – $965 |
| Acute Care Facilities | $1035 – $1285 |
| Specialty Clinics | $625 – $790 |
This table reflects typical costs across Texas’s key urban and rural areas. Prices tend to be higher in metropolitan areas such as Houston, Dallas, and Austin, where labor and materials are more costly.
Regional Construction Cost Differences in Texas
Houston Area
As one of Texas’s largest metropolitan regions, Houston’s construction costs are often higher than other parts of the state due to high demand and the need for storm and flood-resistant infrastructure.
- Single-story Commercial Buildings: $320 – $460
- Mid-rise Offices: $365 – $895
- High-rise Buildings: $475 – $1065
- Shopping Centers: $495 – $650
- Hotels (Three-Star): $510 – $650
- Hotels (Five-Star): $700 – $930
Key Cost Drivers in Houston
Storm-resistant features, strict building codes for flood-prone areas, and high demand in Houston’s busy real estate market push construction costs higher. Skilled labor costs also play a role, reflecting Houston’s competitive job market.
Dallas-Fort Worth Area
The Dallas-Fort Worth area has seen significant growth, impacting construction costs. However, prices remain relatively competitive for certain building types due to the extensive availability of construction resources.
- Single-story Commercial Buildings: $310 – $450
- Mid-rise Offices: $360 – $885
- High-rise Buildings: $470 – $1055
- Shopping Centers: $485 – $640
- Hotels (Three-Star): $500 – $635
- Hotels (Five-Star): $685 – $910
Key Cost Drivers in Dallas-Fort Worth
Rapid expansion and high demand for new developments in Dallas-Fort Worth impact construction costs, particularly for high-rise buildings and commercial spaces. Competitive labor rates, however, keep costs manageable in certain project types.
Austin Area
Austin’s booming tech and business sectors drive up construction costs as the city’s infrastructure grows rapidly.
- Single-story Commercial Buildings: $315 – $455
- Mid-rise Offices: $365 – $895
- High-rise Buildings: $475 – $1075
- Shopping Centers: $490 – $650
- Hotels (Three-Star): $510 – $645
- Hotels (Five-Star): $690 – $925
Key Cost Drivers in Austin
High material costs, competition for skilled labor, and the demand for sustainable, energy-efficient buildings in Austin make construction projects here generally more expensive. Costs are also driven by local regulations and Austin’s push for green construction.
Texas Commercial Construction Costs by Building Type
Office Buildings
- Single-story: Average $315 per square foot
- Mid-rise: Average $565 per square foot
- High-rise: Average $670 per square foot
Hospitality and Lodging
Hotel construction costs vary based on star ratings and desired amenities. The higher the star rating, the more luxurious finishes and added amenities.
- Three-Star Hotels: Average $510 per square foot
- Five-Star Hotels: Average $700 per square foot
Warehouses and Industrial Facilities
Warehouse and industrial facility costs vary depending on structural needs, equipment, and building location.
- Regional Distribution Warehouse: Average $225 per square foot
- Light Industrial Warehouse: Average $250 per square foot
Healthcare Facilities
Healthcare projects, especially acute care facilities, have some of the highest costs per square foot due to strict regulatory requirements and specialized equipment.
- Acute Care Facilities: Average $1050 per square foot
- Medical Office Buildings: Average $490 per square foot
- Specialty Clinics: Average $640 per square foot
Educational Institutions
School construction costs vary based on level (primary, secondary, or university) and location.
- Primary Schools: Average $320 – $430 per square foot
- University Classroom Buildings: Average $590 – $770 per square foot
Breakdown of Major Construction Costs in Texas
Foundations
Foundation expenses constitute about 11.5% of the total construction cost, covering excavation, concrete, and backfill work.
Labor
Labor costs in Texas range from 18% to 35% of the project budget, influenced by region, skill levels, and project complexity.
Materials
Material costs represent 17.5% to 25% of total costs, with prices fluctuating due to demand, regional availability, and the specifics of the building structure.
Finishes
Interior and exterior finishes are a significant cost factor, with high-grade materials increasing expenses. These costs can represent up to 30% of the total project budget.
Additional Costs to Consider in Texas
In addition to base construction expenses, several other factors contribute to the overall project budget:
- Design Fees: Typically range from 1% to 15% depending on project complexity and the level of customization required.
- Major Systems (HVAC, Plumbing, Electrical): Generally account for 12.5% of construction costs.
- Permits and Legal Fees: Regulatory expenses can range from 0.5% to 2.5% in Texas, depending on the project’s size and location.
- Landscaping and Exterior Aesthetics: Landscaping typically comprises 6.5% of the total budget, covering driveways, outdoor features, and greenery.
Estimating Commercial Building Costs in Texas
Accurate estimates begin with identifying the building class (A, B, or C) and applying the regional per-square-foot rate. Labor and material expenses will further impact the budget, as will regulatory requirements specific to Texas.
Example: Estimating the Cost of a 10,000 Sq Ft Warehouse in Texas
For a 10,000 sq ft warehouse, costs are estimated by accounting for hard, soft, and operational expenses. Using an average base cost of $225 per square foot:
- Hard Costs (Structure, Roofing, Flooring): Approximately 70% of total cost
- Soft Costs (Permits, Legal Fees): 10-15%
- Operational Costs (Utilities, Maintenance): 5-10%
A preliminary estimate for a 10,000 sq ft warehouse in Texas would therefore range from $2.25 million to $2.85 million.
