1. What is Rent per Square Foot?

Rent per square foot is a standard commercial real estate metric that allows comparison of rental rates across different properties. It's calculated by dividing the total rent by the total square footage of the leased space.

2. How to Calculate Rent per Square Foot

The formula for calculating rent per square foot is:

Where:

• Total Rent — The full rental amount (usually monthly or annually)
• Square Footage — The total area of the leased space in square feet

Example: For a 1,200 sq ft office space renting for $2,400/month:
$2,400 ÷ 1,200 sq ft = $2.00 per sq ft/month

3. Importance of Rent per Square Foot Calculation

Details: This calculation helps tenants compare leasing options, landlords set competitive rates, and brokers analyze market trends. It standardizes pricing regardless of unit size.

4. Using the Calculator

Tips: Enter the total rent amount (in dollars) and the square footage of the space. The calculator will compute the price per square foot. Make sure both values are positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I use monthly or annual rent?
A: Either is fine, but be consistent in your comparisons. Commercial leases often quote annual rates per sq ft.

Q2: Does this include common areas?
A: Depends if you're using usable square footage (USF) or rentable square footage (RSF). RSF includes a share of common areas.

Q3: What's a good rent per square foot?
A: Varies widely by location, property type, and market conditions. Research comparable properties in your area.

Q4: How does this differ from residential rent calculations?
A: Commercial leases often use price per sq ft, while residential typically uses total monthly rent regardless of size.

Q5: Are utilities included in this calculation?
A: Only if they're included in the base rent. Some leases calculate rent per sq ft separately from operating expenses.