1. What is Price Per Square Foot?

Price per square foot is a common metric used in real estate to compare the value of different properties by standardizing the cost relative to their size. It's calculated by dividing the total rent by the total square footage of the property.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Rent — Annual rental cost in dollars
• Square Footage — Total area of the property in square feet

Explanation: This calculation gives you the standardized cost per unit area, allowing for easy comparison between properties of different sizes.

3. Importance of Price Per Square Foot

Details: This metric is crucial for comparing rental properties, evaluating fair market value, budgeting for commercial spaces, and making informed real estate decisions.

4. Using the Calculator

Tips: Enter the total annual rent in dollars and the property's total square footage. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: Should I use annual or monthly rent?
A: This calculator uses annual rent. If you have monthly rent, multiply it by 12 before entering.

Q2: What's a good price per square foot?
A: This varies greatly by location, property type, and market conditions. Compare with similar properties in your area.

Q3: Does this include common areas in commercial buildings?
A: For commercial leases, clarify whether the square footage includes common areas (usable vs. rentable square footage).

Q4: How does this differ from price per square foot for purchase?
A: The calculation is similar, but purchase prices typically reflect long-term value while rental prices reflect current market rates.

Q5: Should I use this for residential or commercial?
A: This metric is useful for both, though commercial real estate typically relies on it more heavily for comparison.