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CPPSF Equation:
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The CPPSF (Commercial Price Per Square Foot) equation calculates the price per square foot from total cost and square footage. This is a crucial metric in commercial real estate for comparing property values and making investment decisions.
The calculator uses the CPPSF equation:
Where:
Explanation: The calculator converts feet and inches input to total square feet (1 foot = 12 inches) before performing the division.
Details: CPPSF is essential for commercial real estate valuation, lease negotiations, property comparisons, and investment analysis. It provides a standardized way to compare properties of different sizes.
Tips: Enter total cost in currency, square footage in feet and inches (e.g., 15 feet 6 inches = 15 feet + 6 inches). All values must be valid (cost > 0, square footage > 0).
Q1: Why calculate price per square foot?
A: It allows for fair comparison of commercial properties of different sizes and helps determine if a property is priced appropriately relative to the market.
Q2: What is a good CPPSF value?
A: This varies significantly by location, property type, and market conditions. Always compare with similar properties in the same area.
Q3: Should I include all square footage?
A: Typically, commercial calculations use rentable square footage, which includes a proportionate share of common areas. Be consistent in what you include.
Q4: How does building class affect CPPSF?
A: Class A buildings typically command higher prices per square foot than Class B or C properties due to better amenities, location, and condition.
Q5: Are there limitations to CPPSF comparison?
A: Yes. CPPSF doesn't account for property condition, lease terms, tenant improvements, or specific location advantages within a market.