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Commercial Replacement Costs

Cost Estimation

Commercial replacement cost with three estimate tiers

Overview

Rebuild estimates for commercial buildings at three confidence tiers, given per square foot and in total. Modeled from construction quality and type, exterior and roof coverings, year built, and building area. Carriers price risk and review stated values, and investors use it to budget acquisitions.

The facade of a modern white and glass mid-rise office building against a blue sky

What’s included

  • Replacement cost per sq ft: low, medium, high
  • Total replacement cost: low, medium, high
  • Estimate considerations: construction quality, construction type, exterior covering, roof covering, year built, building area

What teams use it for

  • Commercial underwriting and rating

    A costed rebuild broken out by construction type, occupancy, and exterior, priced for this building rather than a general per square foot figure.

  • Reviewing stated values on submissions

    Compare the value on a submission with what the building would cost to replace today so any difference is understood well ahead of renewal.

  • Budgeting an acquisition

    Underwrite a purchase with a rebuild figure already in hand, so what it would cost to put the building back is part of the deal math from the start.