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CLPPSF Formula:
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Commercial Lease Price Per Square Foot (CLPPSF) is a standard metric used in commercial real estate to calculate the cost of leasing space. It represents the price per unit area and allows for easy comparison of lease rates across different properties and markets.
The calculator uses the CLPPSF formula:
Where:
Explanation: This simple division calculates the cost per square foot, which is the standard way commercial lease rates are quoted and compared.
Details: Calculating price per square foot is essential for comparing different commercial properties, budgeting for space costs, negotiating leases, and making informed real estate decisions. It provides a standardized way to evaluate the cost efficiency of different spaces.
Tips: Enter the total lease cost in your local currency and the total square footage of the space. Both values must be positive numbers. The calculator will compute the price per square foot for easy comparison with other properties.
Q1: What's included in the total cost?
A: Total cost typically includes base rent plus any additional charges like common area maintenance, taxes, and insurance, unless specified otherwise.
Q2: Is this calculation for gross or net leases?
A: This calculation works for both gross and net leases, but be sure you're comparing similar lease structures when evaluating different properties.
Q3: How does this differ from residential pricing?
A: Commercial leases are typically quoted per square foot per year, while residential is often quoted as a monthly rate for the entire unit.
Q4: Should I use usable or rentable square footage?
A: For accurate comparisons, use rentable square footage which includes your share of common areas, as this is the standard method for commercial leasing.
Q5: How do location and building class affect CLPPSF?
A: Prime locations and Class A buildings command higher prices per square foot, while secondary locations and older buildings typically have lower rates.