In many cases, commercial real estate investments are structured as real estate limited partnerships (RELPs). A RELP will generally consist of a general partner (GP) and multiple limited partners (LPs). The GP, who is financially responsible for the investment, is often a real estate developer or property manager, while the LPs are typically passive investors who only contribute capital to the project.
If you’re interested in demolishing a commercial building in order to make way for new development, it’s essential to understand the costs of commercial demolition. Right now, commercial demolition costs between $4 to $8 per sq. ft., with the average per building demolition cost in the U.S. currently sitting at $30,500. This makes perfect sense, as the median size of commercial buildings in the U.S. is about 5,000 sq. ft. (5,000 *6 = 30,000). However, it’s also important to note that for especially large buildings, demolition costs per square foot may fall slightly.