The price per square foot is a standard real estate calculation that businesses, landlords and real estate agents employ to represent the cost of commercial real estate. Rather than just listing a price and the square footage of a unit, warehouse or other structure, as you would for an apartment, the dollars per square foot breaks down the cost by area, so you can easily see what you are getting for your dollar. In commercial real estate, you will sometimes see the figure in dollars per month per square foot, but more frequently it is expressed as an annual total.
Measure the space's dimensions. Either do this on site with the measuring tape, or use the blueprint or plan. You will need to convert from the plan's scale. The scale should be plainly visible, and will show the feet (or meters) per inch (or centimetre).
Multiply the length and width of each area or room, including passageways and hallways.
Sum the area totals. This is the aggregate square footage.
Divide the monthly price by your aggregate area total. For instance, if the monthly rent is £906, and the area is 785 square feet, the result is £1.10.
Multiply the Step 4 figure by 12. This operation returns the annual price per square foot. In this example, £1.10 times 12 is £13.80 per square foot, annually.
Things you need
- Measuring tape (or blueprint)