Home
Back
Price Per Square Foot Formula:
| From: | To: |
The Price Per Square Foot calculation is a standard metric used in commercial real estate to determine the cost efficiency of a property. It helps compare different properties by normalizing the price based on their area.
The calculator uses the simple formula:
Where:
Explanation: This calculation provides a standardized measure to compare commercial properties of different sizes and prices.
Details: This metric is crucial for commercial real estate investors, buyers, and appraisers to make informed decisions about property investments and compare different commercial spaces effectively.
Tips: Enter the total commercial price and the area in square feet. Both values must be positive numbers to get accurate results.
Q1: Why calculate price per square foot?
A: It provides a standardized way to compare commercial properties of different sizes and helps determine if a property is priced appropriately.
Q2: What is a good price per square foot for commercial property?
A: This varies significantly by location, property type, and market conditions. It's best to compare with similar properties in the same area.
Q3: Does this calculation include additional costs?
A: No, this calculation only considers the base commercial price and area. Additional costs like taxes, maintenance, or renovation should be considered separately.
Q4: Can this be used for rental properties?
A: Yes, the same calculation can be applied to determine rental price per square foot for commercial leases.
Q5: How accurate is this calculation for property valuation?
A: While useful for quick comparisons, professional property valuation should consider many additional factors beyond just price per square foot.