Dental Office Build-Out Costs
The Problem
This project involved a claim between a landlord and their tenant, a large dental practice occupying the building. The tenant was forced to relocate to a new location following a property damage claim in their original office space. Believing a cheaper option to be available, the landlord disputed the projected costs of building-out the features needed to operate a dental practice at the new location.
The Solution
Pete Fowler Construction was retained by the dental office to verify the construction costs associated with the build-out of the newly selected location. Our team performed numerous cost analyses, both for properties similar to the original lease location and for properties of a significant upgrade (similar to the new space chosen by the tenant).
Our team found and reviewed all available documents and performed market research to determine the national average of build-out costs for medical facilities, ranging from $81-$194 per square foot, depending on specifications, age of the structure, and logistics. When considering the market conditions at the time of the case and the geographical location (1.05 location factor identified by the estimating publication for the particular area), PFCS determined $145 per square foot to be a reasonable cost for the needed renovations.
Ultimately, Pete Fowler Construction believed all three bids to be competitive, exhibiting very similar pricing structures for all items identified when compared side by side. The case was settled shortly after presenting the findings of our cost analysis.