In the development industry you often hear that sites were purchased per buildable square foot rather than the purchase price it actually sold for. Price per square foot buildable is calculated by taking the total amount of square footage that is possible to build and dividing it by the purchase price. Price per square foot buildable a quick way to compare different sites…just like most people compare price per square foot of their favourite condo projects. Price per square foot buildable takes into account what is possible to build on a site and gives industry folk an idea of how much the condo units can potentially be sold for because land costs usually accounts for 10% of the total cost for building a condo. This is a hard and fast rule, and doesn’t take into account the following:
- Cost to build on a site (especially if the site is oddly shaped or because it will be difficult in getting construction equipment in)
- The extra density you may get if you seek more density from the city.
So let’s take a look at some sites that were recently purchased by developers in the industry and the cost per square foot buildable:
- 177-197 Front St – $58 psf buildable
- INDX – 66 & 70 Temperance St – $60 psf buildable
- 355 King St W – $118 psf buildable
- 1000 Bay St – $132 psf buildable