Commercial Construction Cost per Square Foot in Texas, by Building Type

Commercial construction in Texas runs from about $90 to $500 per square foot for the building alone, depending on what the building is for. A plain warehouse sits at the bottom of that spread. A bank branch, with its vault, drive-up lanes, and high finish, sits at the top. Offices, shops, and restaurants fall in between.

These numbers come from the AP Construction Cost Index, the model behind our instant estimate. They are building costs at AP’s baseline, a 5,000 SF building in Dallas-Fort Worth. This guide is for owners, developers, and lenders who need a first budget for a commercial building in Texas, Louisiana, or Oklahoma before a design exists.

Cost per square foot by building type

Each rate covers construction of the building, including the general contractor’s general conditions, overhead, and fee.

Building type	What the rate assumes	Per SF, 5,000 SF	Per SF, 50,000 SF and up
Warehouse	Tilt-wall shell, docks, modest office	$90 to $155	$70 to $121
Distribution center	36 ft clear, heavy dock count, ESFR, automation-ready	$120 to $190	$94 to $148
Light industrial or manufacturing	Office, production, and warehouse under one roof	$140 to $235	$109 to $183
Automotive service center	Lifts, fluids, wash bay, customer lounge	$140 to $225	$109 to $176
Retail or restaurant	First-generation build-out, storefront, kitchen exhaust	$150 to $300	$117 to $234
PEMB or light-industrial shell with office finish	Red-iron frame, metal or masonry skin, finished office	$170 to $215	$133 to $168
Truck or fleet facility	Drive-through bays, lifts, fluids, fuel island, wash	$180 to $310	$140 to $242
Office or workplace	Conventional: tilt-wall or CMU, masonry, storefront	$250 to $320	$195 to $250
Bank branch	Vault, drive-up, secure areas, high finish	$300 to $500	$234 to $390

All figures are dollars per building square foot, before market, soil, and site adjustments. The office and metal building rates come from AP’s own estimating workbook. The other rates are published industry ranges, adjusted to the same 5,000 SF Dallas-Fort Worth baseline so every row compares fairly.

Warehouses and industrial buildings have their own guide, and AP’s commercial distribution center construction page covers what drives a DC budget beyond the building. For storage buildings, warehouse construction cost per square foot in Texas goes deeper on clear height, docks, and fire protection.

Why the building type matters most

The spread from one row to the next is bigger than any other factor on this page. Three things drive it:

• Systems per square foot. A restaurant needs kitchen exhaust, grease interceptors, and heavy electrical service. A bank needs a vault, drive-up equipment, and security. A warehouse needs very little inside the shell.
• Finish level. Lobbies, storefront glass, and finished ceilings cost far more per foot than sealed concrete and exposed structure.
• Share of conditioned space. Every square foot of an office or shop is heated, cooled, and lit for people. Much of a warehouse is not.

That is why a $250 per foot office and a $90 per foot warehouse can both be good prices for their type.

Shell or first-generation build-out

Two terms come up in almost every commercial budget:

• Shell. The structure, roof, walls, slab, and building systems brought to the space, with little or no interior finish.
• First-generation build-out. The first full interior in a new building: walls, ceilings, finishes, restrooms, mechanical distribution, and lighting, ready to occupy.

The index prices complete buildings, and the type rows show the difference. The metal building row includes a finished office, so it starts at $170 where a warehouse shell starts at $90. The retail and restaurant row includes a first-generation build-out with storefront and kitchen exhaust.

An interior build-out inside an existing building is a different estimate. The index does not price it, because the cost depends on what the shell already provides. AP prices those projects from drawings in preconstruction. Our corporate workplace and retail pages describe the build-outs AP delivers.

Size: larger buildings cost less per foot

Fixed costs, such as supervision, the site office, and mobilization, spread over more floor area as a building grows. The index applies a size factor to the base rate:

Building size	Factor applied to the base rate
Under 3,000 SF	1.20
3,000 to 4,999 SF	1.10
5,000 to 7,499 SF	1.00
7,500 to 9,999 SF	0.95
10,000 to 14,999 SF	0.90
15,000 to 24,999 SF	0.86
25,000 to 49,999 SF	0.82
50,000 SF and up	0.78

A small building pays more per foot. Under 3,000 SF, the factor is 1.20, so a compact branch or pad site costs more per foot than the same type at the baseline.

Metro: where in Texas you build

The index measures each market against Dallas-Fort Worth:

Market	Adjustment to the base
Dallas-Fort Worth	Baseline
Houston	+1% to +4%
Austin	+8% to +12%
San Antonio	+2% to +5%
El Paso	−2% to +3%
Rio Grande Valley	−5% to +2%
Corpus Christi	+6% to +12%
Midland / Odessa	+8% to +25%

Sites more than 45 miles from a metro core add a travel adjustment, because crews and deliveries have to travel.

Site conditions that add cost

• Soil. Moderate soil adds $10 to $20 per SF. Severe soil adds $20 to $35 per SF. Blackland clay in Dallas-Fort Worth and fill on the Gulf Coast usually count as moderate.
• Coastal wind zone. Higher design wind loads, impact-rated glazing, and builder’s risk add 5% to 12%.
• Public or prevailing wage work. Wage rates and certified payroll add 10% to 20%.

Three worked examples

Each example runs through the index the same way the instant estimate does, using the market’s usual soil and coastal settings.

Building	Per SF	Building total
12,000 SF office, Houston	$237 to $320	$2,850,000 to $3,830,000
6,000 SF retail or restaurant, Austin	$172 to $356	$1,030,000 to $2,140,000
4,000 SF bank branch, San Antonio	$337 to $578	$1,350,000 to $2,310,000

The Houston office is above the baseline size, so its factor of 0.90 trims the rate, while Gulf Coast soil adds to it. The Austin restaurant is close to baseline size, so most of its range comes from the type itself. The San Antonio branch is small, and at 1.10 its size factor pushes an already high rate higher.

What the number leaves out

The index prices the building. Keep these in the project budget as separate lines:

• Land acquisition and closing costs
• Site development beyond the building pad (paving, drainage, detention, retaining, landscape, irrigation)
• Offsite utility extensions, taps, and franchise utility fees
• Impact fees, plan review fees, permit fees, water/wastewater capacity fees
• Architectural, structural, MEP, civil, and geotechnical design fees
• Survey, platting, and entitlement costs
• Furniture, fixtures, and equipment (FF&E)
• Owner-furnished equipment, IT/AV, security, and low-voltage cabling
• Testing and special inspections
• Escalation beyond the current quarter
• Owner contingency
• Financing and carrying costs

On a pad site or a small lot, parking, drainage, and utility work can add a large share on top of the building. Ask for site costs early, before the land closes.

Common questions

What is the cheapest type of commercial building to build in Texas?

In AP’s index, a warehouse is the lowest at $90 to $155 per square foot at the baseline. It has the least interior finish and the fewest systems per foot. A pre-engineered metal building with a finished office starts at $170.

Why does a bank branch cost so much per square foot?

A branch packs a vault, drive-up lanes, security, and a high finish into a small floor plate. Small buildings also carry a higher size factor. Together, that puts a branch at $300 to $500 per square foot at the baseline, the highest of any type AP prices.

Is Houston more expensive to build in than Dallas?

Slightly. The index places Houston at +1% to +4% over Dallas-Fort Worth. Both metros usually carry a moderate soil adder, Gulf Coast fill in Houston and Blackland clay in Dallas, so on most sites the market adjustment is the whole difference.

Do these costs include the land and the site work?

No. The rates cover the building only. Land, paving, drainage, detention, utility extensions, design fees, permits, and impact fees are budgeted separately. The full list is in the section above.

How to use these numbers

The index carries the same caveat as the instant estimate: this calculator produces a planning-level order-of-magnitude range, not a bid or a proposal. It reflects building construction cost only; see the exclusions list. Actual pricing depends on documents, site conditions, schedule, and market conditions at the time of bid. No estimate, warranty, or contractual commitment is created by the output of this tool.

Use a range like this for a first budget, a site decision, or a lender conversation. Once there is a site and a program, AP replaces the index with a quote-based estimate in preconstruction, using current trade pricing for your building and your market. To see the range for your own building, enter its type, size, and ZIP code in the instant estimate.