Definition
Development expenses that aren't physical construction—architectural fees, permits, insurance, financing costs. The budget line items that mysteriously balloon while making your project more expensive without anything visible to show for it.
Example Usage
Soft costs consumed 25% of the development budget, including $150,000 in architectural revisions alone.
Origin
Construction and development terminology distinguishing non-material costs from 'hard costs'
Fun Fact
Soft costs can reach 20-30% of total development costs in major cities due to permit delays, legal fees, and regulatory compliance.
Source: Real estate development terminology
Related Terms
Translate This Term
See “soft costs” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator