Increase Your Buildings NOI by 13.9% with ICF Construction
I recently came across a sample cost analysis that compares the cost of a hotel built with wood vs. the same hotel built with ICF and concrete. It confirms that if you build with Insulated Concrete Forms (ICF) you can increase your NOI by reducing energy and insurance costs and providing a more comfortable occupant experience.
Here is the recap:
A comprehensive cost estimate was conducted for a speculative four-story 41,250 square foot hotel located in Richmond, Virginia. The building consists of 88 units, a gym, various offices, and ancillary support spaces. The cost estimates were conducted for wood frame construction and concrete construction.
Operating Income Estimates
Operating income for the concrete building is 13.9% higher because of savings for energy costs, insurance, and reduced vacancy because of reduced noise, increased thermal comfort, and lower rent plus utility costs. The highest net operating income is for the concrete building affording the owner the opportunity to charge typical room rental rates while incurring minimal utility costs.
Up Front Cost Summary
Wood Framing vs. ICF & Precast Plank vs. ICF & Composite Concrete Floor Deck
ICF (Insulated Concrete Forms) and Precast Plank Flooring offers a $542,401.71 savings or a 6.6% cost reduction over the use of a wood-framed structure. ICF and Composite Concrete Floor Decking offers an even greater savings of $927,243.68 or a 10.6% cost reduction over Wood. The benefits of using ICF are not limited to a substantially reduced upfront first cost only. Some of the other realized benefits are as follows:
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Expedited construction schedules (10% to 15% over other structural systems)
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Superior energy efficiency will allow the building to save as much as 15% to 25% on the cost of HVAC equipment due to the reduction in the heating/ cooling loads, resulting in an ROI evidenced by monthly utility costs being reduced as much as 30% plus
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Increase sound attenuation, improving the occupants experience (STC rating of 55+)
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Increased owner income (see Section “2. Owner Income Estimate”)
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Builder’s Risk and Owner Liability Insurance can be reduced by as much as 35% to 50%
For a copy of this 45 page report including budget numbers and case studies, you can visit our website and download the report. www.polycreteusa.com/sample-cost-analysis