1. What is Price per Square Foot?

Price per square foot is a standard measurement used in real estate to compare the value of properties by dividing the total cost by the total area. It's commonly used for lease and rental evaluations.

2. How the Calculation Works

The calculation uses a simple formula:

Where:

• Total Cost — The complete lease or rental amount in USD
• Square Footage — The total area of the space in square feet

Explanation: This calculation standardizes property costs by area, allowing for direct comparison between properties of different sizes.

3. Importance of This Metric

Details: Price per square foot helps tenants compare lease offers, landlords set competitive rates, and investors evaluate property values. It's particularly useful in commercial real estate.

4. Using the Calculator

Tips: Enter the total lease/rental cost in USD and the property's square footage. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What's a good price per square foot?
A: This varies by location and property type. Commercial spaces in city centers typically have higher rates than suburban areas.

Q2: Should I include common areas in square footage?
A: For commercial leases, verify whether the quoted square footage includes common areas (like lobbies and hallways).

Q3: How does this differ from purchase price per square foot?
A: The calculation is similar, but lease rates are typically much lower than purchase prices since they represent temporary use rather than ownership.

Q4: What factors affect price per square foot?
A: Location, building quality, lease terms, market conditions, and included amenities all influence the rate.

Q5: How often should I recalculate this metric?
A: Recalculate when comparing new properties or when market conditions change significantly.