Mezzanine vs New Construction: Cost Comparison

Author Headshot - Thomas Feldman
Thomas Feldman
Nov 03, 2021

The Problem with Cost

Cost is a tricky thing to nail down.

Until you have exact plans and contracts signed you will just be estimating cost.

Cost is dependent on commodities in the market, wages for labor, and usually the overhead of the company you’re working with.

Sometimes the market is down, the wages are up, and the company is not fair.

When that’s the case you can expect the cost to be high.

Thankfully these forces will usually act on everything the same.

If mezzanine construction costs go up, it’s likely that building construction costs have gone up as well.

So the question you should ask yourself at the end of this article is not “How much does a mezzanine cost?”, but “Will a mezzanine save me money?”.

Cost of a Mezzanine

Mezzanine costs vary depending on what you want.

Weight limits, height, and chosen material will all change the cost of your mezzanine.

Even though mezzanines are so varied the rough estimate for mezzanine construction is usually $25 per square foot.

A 40,000 square foot mezzanine would cost roughly $1,000,000.

Cost of Construction

The cost of construction, as stated above can vary, but it will largely depend on what you want constructed.

For the purposes of this article, I’ll be assuming that you would be constructing a factory or warehouse style building.

Office buildings would cost more because you would have to add things like drywall, insulation, and possibly separate levels to the building.

Estimates on warehouse construction are on average around $55-$70 per square foot.

So if you wanted a forty thousand square foot warehouse, a good estimate would be $2,500,000.

Compare that to a 40,000 square foot mezzanine and you would be spending $1,500,000 for the same amount of floor space.

But the cost of construction doesn’t end there.

Cost Effectiveness Scenario

Let’s say you are thinking about building a new building.

You’ve got the estimate for the building construction, but you have a few other things that you will need to factor in.

Buying land, hiring contractors, getting building permits, and paying the additional monthly expenses.

All of those things will add to the cost of your new building.

With a mezzanine you would be able to avoid all of those costs

Another major cost you avoid by choosing a mezzanine is the cost of time, or opportunity cost.

New construction takes many months and during that time you won’t be able to use that space.

This means you’ll have to hold off on increasing production, or your storage space until your building is done.

Mezzanines on the other hand, take weeks to build.

So if you need additional space as soon as possible, a mezzanine would be your best option.

Which is Right for You?

Mezzanines do save you money compared to construction, but your scenario could be unique.

If you have to triple your warehouse space, then a mezzanine wouldn’t be right for you because it wouldn’t fit within your existing space.

If you had to increase your space by 33% a mezzanine would be your most cost effective option.

Because each situation is unique it can be helpful to speak with someone who is knowledgeable and has helped many businesses in the past.

As I mentioned in the introduction, the company you work with can influence your total cost.

Working with a company like PWI, that has a long track record of happy and repeat customers, can save you a lot of money and get you the best result for your business.

To get some help from our team of experts, fill out a request for a free quote. We would be happy to help you find the right solution for your business.

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