Live-Work Units, East London
Live-Work Units Case Study
Project Brief
A developer in Hackney commissioned First4Estimating to provide estimates for a new-build development of six live-work units. Each unit combined a ground-floor commercial workspace with a first-floor residential apartment, creating a mixed-use scheme designed to appeal to creative professionals and small business owners.
The developer needed detailed per-unit costings to assess viability and secure development finance for the scheme. With each unit varying in layout and specification, a simple multiplication approach would not have provided the accuracy required for funding applications and pre-sale pricing.
The Challenge
Each of the six units had a slightly different floor plan requiring individual pricing rather than a simple multiplication. The live-work designation required compliance with both commercial and residential building regulations simultaneously, adding complexity to the specification and cost analysis.
Site constraints in a dense urban area limited crane access and material storage, increasing preliminary costs. The developer also needed to understand how different specification levels would affect both build cost and eventual sale price to optimise the return on investment.
Key challenge: Producing accurate individual estimates for six units with different floor plans while navigating dual commercial and residential compliance requirements, all within the constraints of a tight urban site in Hackney.
What We Delivered
- Individual unit estimates for all six units with common elements identified and apportioned fairly across the development
- Combined site-wide estimate including shared infrastructure, drainage, landscaping and external works
- Detailed preliminaries breakdown reflecting urban site constraints including restricted access, limited storage and traffic management
- Specification comparison at two quality levels for developer decision-making, showing the cost impact of upgrading finishes
- Development appraisal cost input formatted for funding applications, providing lenders with the detail they required
The Outcome
The per-unit costings allowed the developer to pre-sell two units off-plan, generating early cash flow that improved the overall funding position. The two-tier specification comparison helped them settle on a mid-range finish that maximised return on investment without pricing the units out of the local market. The development was completed in 14 months, 3% under the combined estimate.
Client Testimonial
Having individual estimates per unit was a game-changer for our sales strategy. We could price each unit to the market while knowing exactly what our build cost was. First4Estimating’s development appraisal input helped us secure funding quickly and confidently.