A Closer Look at Soft Costs in Commercial Development
As part of our “series” breaking down commercial development costs, let’s take a closer look at the soft costs associated with the commercial real estate development process.
What are Soft Costs?
Soft costs are those that are not directly related to the physical construction of the building. Many of these costs are incurred during the early stages of the commercial development process and pre-cursors to the construction phase.
These costs are typically less noticeable than hard costs because they don’t apply to tangible, physical elements of the project. However, without adequately addressing the elements in the soft cost category, there would be no commercial development project. Or, commercial development/construction costs may end up much higher. For example, proper design and engineering can help to lower a project’s hard costs. With that in mind, let’s take a closer look at some of the soft costs associated with new commercial developments.