Build-Out Budget

Detailed construction and renovation budget with line-item cost estimates.

1. Budget Summary

Total Build-Out Cost Estimates

CategoryLow EstimateMid EstimateHigh Estimate
Construction$120,000$150,000$200,000
FF&E (Furniture, Fixtures, Equipment)$25,000$35,000$50,000
Permits & Fees$3,000$5,000$8,000
Professional Fees$5,000$10,000$15,000
Contingency (10%)$15,000$20,000$27,000
TOTAL BUILD-OUT$168,000$220,000$300,000

Cost per Square Foot Analysis

EstimateTotalSquare FeetCost/SF
Low$168,0003,500$48/sf
Mid$220,0003,500$63/sf
High$300,0003,500$86/sf

Benchmark Comparison:

  • General commercial tenant improvement: $100-$300/sf
  • Franchise salon suites (Sola, JC): ~$224/sf
  • Luxa estimate: $63/sf (Mid) - 72% below franchise cost

Cost Advantage Sources:

  1. China FF&E sourcing (40-60% savings on furniture)
  2. Owner-managed construction (potential 15-20% savings)
  3. Right-sized facility (3,500 sf vs larger franchise formats)
  4. Efficient suite mix (high Standard/Plus ratio)

2. Construction Costs Breakdown

By Trade

Trade% of TotalLowMidHighNotes
Demolition3%$3,600$4,500$6,000Depends on existing conditions
Framing/Drywall25%$30,000$37,500$50,000STC 48-52 premium wall assembly
Electrical18%$21,600$27,000$36,0002x 20A dedicated per suite
Plumbing15%$18,000$22,500$30,00010 shampoo bowls (Plus tier+)
HVAC12%$14,400$18,000$24,000Fresh air + zone control
Flooring10%$12,000$15,000$20,000Premium LVP 20+ mil
Paint/Finishes7%$8,400$10,500$14,000Prime + 2 coats
Doors/Hardware5%$6,000$7,500$10,00018 suite doors + common areas
Ceiling5%$6,000$7,500$10,000Acoustical tile
TOTAL CONSTRUCTION100%$120,000$150,000$200,000

Construction Cost Detail

Demolition ($3,600 - $6,000)

  • Remove existing partitions (if any)
  • Flooring removal
  • Ceiling tile removal (if required)
  • Haul-off and disposal
  • Note: Highly dependent on existing shell condition

Framing/Drywall ($30,000 - $50,000)

STC 48-52 Wall Assembly (Premium Soundproofing):

  • 3-5/8" metal studs, 24" O.C.
  • R-13 insulation
  • Double 5/8" drywall both sides
  • Green Glue damping compound between layers
  • Acoustical sealant at all perimeters

Quantity Estimates:

  • Suite demising walls: ~600 linear feet
  • Common area walls: ~150 linear feet
  • Per linear foot: ~$40-$65 for STC 48-52 assembly

Note: Standard STC 36-40 walls would cost ~$25-$35/LF (30% savings) but compromise tenant satisfaction

Electrical ($21,600 - $36,000)

Per Suite:

  • 2x 20A/120V dedicated circuits: $400-$600 per circuit
  • 4-8 duplex outlets: $50-$75 each installed
  • GFCI protection at wet locations
  • Task lighting circuits

Common Areas:

  • 200A main panel upgrade (if needed): $2,000-$4,000
  • Reception, break room, laundry circuits
  • Emergency lighting
  • Security system circuits

Total Circuits Needed:

  • 18 suites x 2 circuits = 36 dedicated suite circuits
  • Common areas: ~10 circuits
  • Total: ~46 circuits

Plumbing ($18,000 - $30,000)

Shampoo Bowl Installation (10 bowls for Plus tier+):

  • Per bowl rough-in: $800-$1,500
  • Per bowl trim-out: $200-$400
  • Hot water distribution
  • Drain connections (below-slab if needed)

Common Area Plumbing:

  • Restroom fixtures (existing or new)
  • Break room sink
  • Laundry connections (washer/dryer)

Quantity:

  • 10 shampoo bowls (Plus: 5, Large: 3, Executive: 2)
  • 2-3 common area connections

HVAC ($14,400 - $24,000)

Requirements:

  • 15-45 CFM fresh air per suite (per occupancy)
  • Zone control for tenant comfort
  • Exhaust for nail suite variation (if applicable)
  • Quiet operation (NC 35-40 target)

Work Scope:

  • Extend existing HVAC system
  • Add supply diffusers (18 suites + common)
  • Return air ducting (corridor)
  • Thermostat/zone controls
  • Balance and commissioning

Note: Major HVAC modifications (new unit) could add $10,000-$20,000

Flooring ($12,000 - $20,000)

Premium LVP Specification:

  • 20+ mil wear layer
  • 100% waterproof
  • Commercial-grade traffic rating
  • ~$4-$6/sf installed

Square Footage:

  • 18 suites x ~120 sf avg = 2,160 sf
  • Common areas: ~700 sf
  • Corridors: ~400 sf
  • Total: ~3,260 sf floored area

Paint/Finishes ($8,400 - $14,000)

Scope:

  • Prime all new drywall
  • 2 coats finish (eggshell)
  • Neutral palette (tenant flexibility)
  • Touch-up after fixture installation

Square Footage:

  • Wall surface area: ~10,000-12,000 sf
  • Ceiling (if painted): ~3,500 sf

Doors/Hardware ($6,000 - $10,000)

Suite Doors (18):

  • 36" solid core doors: $200-$300 each
  • Self-closing hardware: $50-$75 each
  • Electronic smart lock prep: $50 per door
  • ADA compliant

Common Area Doors:

  • Entry: existing or upgrade
  • Break room: 1 door
  • Restrooms: 2 doors
  • Storage: 1 door

Smart locks purchased separately in FF&E budget

Ceiling ($6,000 - $10,000)

Acoustical Tile:

  • 2x4 lay-in tile system
  • NRC 0.55+ for sound absorption
  • ~$2-$3/sf installed

Scope:

  • All suite ceilings
  • Common area ceilings
  • Grid system replacement (if needed)

3. FF&E Costs Breakdown

Detailed FF&E Budget (Implementing Split Sourcing)

ItemQtyUnit CostTotalSourceNotes
US-Sourced Items
Shampoo bowls (backwash)10$600$6,000US (Keller)Plumbing warranty
Laundry - commercial washer1$1,000$1,000US (Speed Queen)Warranty
Laundry - commercial dryer1$1,000$1,000US (Speed Queen)Warranty
Lighting fixtures (CRI 90+)50$100$5,000USCRI verification
Access control system1$3,500$3,500US (Nexkey)Integration/support
Security cameras (8-cam)1$1,600$1,600US (UniFi)US support
US Subtotal$18,100
China-Sourced ItemsIncludes 30% tariff + shipping
Styling chairs18$250$4,500China (Hongli)Landed cost
Styling mirrors18$120$2,160China (Alibaba)Landed cost
Wall cabinets18$120$2,160China (Foshan)Landed cost
Base cabinets15$180$2,700China (Foshan)Landed cost
Carts/trolleys18$100$1,800China (Yoocell)Landed cost
Reception desk1$500$500China (Custom)Landed cost
Break room furniture1 set$800$800China (Alibaba)Landed cost
Waiting area seating1 set$600$600China (Alibaba)Landed cost
China Subtotal$15,220
Local Items
Exterior signage1$2,000$2,000LocalPermits may apply
Local Subtotal$2,000
TOTAL FF&E$35,320

FF&E Cost Comparison: Split Sourcing vs All-US

CategoryAll-US CostSplit SourcingSavings
Shampoo bowls$6,000$6,000$0 (keep US)
Styling chairs$14,400$4,500$9,900
Mirrors$5,400$2,160$3,240
Cabinets (wall + base)$9,900$4,860$5,040
Carts/trolleys$4,050$1,800$2,250
Reception/furniture$4,000$1,900$2,100
Tech (access, cameras)$5,100$5,100$0 (keep US)
Laundry$2,000$2,000$0 (keep US)
Lighting$5,000$5,000$0 (keep US)
Signage$2,000$2,000$0 (keep local)
TOTAL$57,850$35,320$22,530 (39%)

4. Permits & Fees

ItemLowMidHighNotes
Tenant Improvement Permit$2,000$3,000$4,000Based on construction value
Zoning Certificate of Use (ZCU)$50$100$200Verify current fee
Plan Review Fees$500$750$1,000Included in TI in some cases
Electrical PermitIncludedIncludedIncludedSub-permit under TI
Plumbing PermitIncludedIncludedIncludedSub-permit under TI
Mechanical PermitIncludedIncludedIncludedSub-permit under TI
Fire Marshal ReviewIncludedIncludedIncludedPart of TI process
Salon Permit (VA DPOR)$225$225$250State license
Business License (Loudoun)$15$50$50County license
Inspection FeesIncludedIncludedIncludedPart of permit fees
TOTAL PERMITS$2,790$4,125$5,500

Rounded Budget: $3,000 - $5,000 - $8,000 (includes buffer)

5. Professional Fees

ServiceLowMidHighNotes
Architect/Space Planner$3,000$6,000$8,000Required for permits
Permit Expediter (optional)$0$1,000$2,000May save time
Legal (lease review)$1,000$1,500$2,000Commercial RE attorney
Customs Broker (China)$300$500$800Required for imports
Pre-Shipment Inspection$300$400$600China QC
Insurance Setup$500$1,000$1,500Broker fees
TOTAL PROFESSIONAL$5,100$10,400$14,900

Rounded Budget: $5,000 - $10,000 - $15,000

6. Contingency Allocation

Contingency Rate: 10% of subtotal (standard for commercial TI)

SubtotalContingency (10%)
Low ($153,000)$15,300
Mid ($200,000)$20,000
High ($273,000)$27,300

Contingency Allocation by Risk Category

Risk CategoryAllocationPurpose
Permit Delays$2,000-$3,000Extended carrying costs
Change Orders$5,000-$8,000Scope modifications
Material Price Changes$2,000-$4,000Inflation, supply chain
Unexpected Conditions$3,000-$6,000Hidden issues in space
China Shipping/Tariff$2,000-$4,000Rate changes, delays
Inspection Failures$1,000-$2,000Rework if needed
TOTAL CONTINGENCY$15,000-$27,000

7. Funding Alignment (Phase 8 Reference)

Available Funding (from Phase 8 Financial Model)

SourceAmountNotes
SBA 7(a) Loan$228,000Mid-range recommendation
Owner Equity$57,000From $150K available
Working Capital (reserved)$35,0006-month operating buffer
TOTAL AVAILABLE$320,000
Less Working Capital($35,000)Reserved for operations
Available for Build-Out$285,000

Budget vs. Funding Comparison

EstimateBuild-Out CostAvailableSurplus/(Gap)
Low$168,000$285,000+$117,000
Mid$220,000$285,000+$65,000
High$300,000$285,000($15,000)

Conclusion: Mid estimate comfortably within funding capacity. High estimate requires minor equity increase or scope reduction.

Use of Surplus (Mid Estimate)

If build-out comes in at Mid estimate ($220,000), surplus of $65,000 could be allocated to:

OptionAmountPurpose
Increased Working Capital$35,000Extended runway (12 months vs 6)
Enhanced FF&E$15,000Premium upgrades, more shampoo bowls
Marketing Reserve$10,000Pre-opening tenant acquisition
Owner Draw Reserve$5,000Personal financial buffer

8. Cost Reduction Opportunities

If budget constraints require, the following value engineering options are available:

OpportunitySavingsTrade-offRecommendation
STC 45 walls vs STC 48-52~$5,000-$8,000Slightly less soundproofingNOT recommended (key differentiator)
Fewer shampoo bowls (8 vs 10)~$1,200-$2,000Shared shampoo for some PlusConsider if tight
Self-manage subs vs GC~$20,000-$30,000Significant time commitmentConsider if experienced
More China sourcing~$5,000-$10,000Additional lead time, riskAlready optimized
Standard lighting vs CRI 90+~$1,500-$2,500Color accuracy impactedNOT recommended (tenant need)
Reduce contingency to 7%~$6,000-$8,000Higher risk exposureNOT recommended
Phase signage~$1,500Delayed brandingAcceptable short-term
Standard vs premium LVP~$3,000-$5,000Durability differenceConsider if tight

Recommended if budget tight:

  1. Phase signage ($1,500 savings)
  2. Reduce to 8 shampoo bowls ($1,200-$2,000 savings)
  3. Standard LVP if quality acceptable ($3,000-$5,000 savings)

Total potential savings: $5,700-$8,500 without compromising core differentiators

9. Budget Tracking Template

Use this template to track actual vs. estimated costs during build-out:

Summary Tracking

CategoryBudgeted (Mid)ActualVarianceNotes
Construction$150,000$______$______
FF&E$35,000$______$______
Permits & Fees$5,000$______$______
Professional Fees$10,000$______$______
Contingency$20,000$______$______
TOTAL$220,000$______$______

Construction Detail Tracking

TradeBudgetedBid AmountActualVariance
Demolition$4,500$______$______$______
Framing/Drywall$37,500$______$______$______
Electrical$27,000$______$______$______
Plumbing$22,500$______$______$______
HVAC$18,000$______$______$______
Flooring$15,000$______$______$______
Paint/Finishes$10,500$______$______$______
Doors/Hardware$7,500$______$______$______
Ceiling$7,500$______$______$______
TOTAL$150,000$______$______$______

FF&E Tracking

ItemBudgetedOrder DatePaidReceivedActual Cost
Shampoo bowls$6,000//___[ ][ ]$______
Styling chairs$4,500//___[ ][ ]$______
Mirrors$2,160//___[ ][ ]$______
Wall cabinets$2,160//___[ ][ ]$______
Base cabinets$2,700//___[ ][ ]$______
Carts/trolleys$1,800//___[ ][ ]$______
Reception desk$500//___[ ][ ]$______
Break room furniture$800//___[ ][ ]$______
Waiting area$600//___[ ][ ]$______
Washer/Dryer$2,000//___[ ][ ]$______
Lighting$5,000//___[ ][ ]$______
Access control$3,500//___[ ][ ]$______
Cameras$1,600//___[ ][ ]$______
Signage$2,000//___[ ][ ]$______
TOTAL$35,320$______

Change Order Log

CO #DateDescriptionAmountApproved ByStatus
001//___$______[ ] Approved [ ] Pending
002//___$______[ ] Approved [ ] Pending
003//___$______[ ] Approved [ ] Pending
TOTAL COs$______

Payment Schedule Tracking

Contractor Payments (30/30/30/10):

Milestone%BudgetedInvoice DatePaid DateAmount
Contract signing30%$45,000//___//___$______
Rough-in complete30%$45,000//___//___$______
Substantial completion30%$45,000//___//___$______
Final/punch list10%$15,000//___//___$______
TOTAL100%$150,000$______

10. Key Assumptions

This budget is based on the following assumptions. Actual costs may vary based on site-specific conditions.

AssumptionBasisImpact if Different
Shell condition"As-is" retail space, minimal demo+$10-20K if extensive demo needed
Existing HVACFunctional system, extension only+$15-25K if new unit required
Plumbing accessAbove-slab preferred, below-slab possible+$5-10K if below-slab throughout
Electrical capacity200A available or upgradeable+$3-5K if service upgrade needed
Floor conditionLevel, suitable for LVP+$2-5K if leveling required
Ceiling height9-10 ft (standard retail)Minimal impact
Local labor ratesLoudoun County averageVaries by contractor
Material costs2026 pricingSubject to inflation
China tariffs30% effective rateBudget has buffer for changes
Lead timesNormal shipping (45-75 days China)Expedited shipping +$2-5K

Build-Out Budget Estimate Complete - Phase 09-02 Task 3

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