1. What is Lease Per Square Foot?

Lease per square foot is a standard metric used in commercial and residential real estate to compare rental rates across different properties. It represents the cost of renting one square foot of space.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• Total Lease — Total cost of the lease in dollars
• Area — Total area in square feet

Explanation: This calculation standardizes lease costs to allow for easy comparison between properties of different sizes.

3. Importance of Lease Per Square Foot Calculation

Details: Calculating lease per square foot is essential for real estate investors, tenants, and property managers to evaluate property value, compare rental rates, and make informed leasing decisions.

4. Using the Calculator

Tips: Enter the total lease amount in dollars and the total area in square feet. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why calculate lease per square foot?
A: It allows for standardized comparison of rental rates across different sized properties, helping tenants and investors make informed decisions.

Q2: What is a good lease rate per square foot?
A: This varies significantly by location, property type, and market conditions. Commercial rates are typically higher than residential rates.

Q3: Does this calculation include additional fees?
A: The calculation should include all lease-related costs (base rent, CAM charges, taxes, insurance) for accurate comparison.

Q4: How often should lease rates be compared?
A: Regular comparison is recommended, especially when considering lease renewals or new property acquisitions.

Q5: Are there different calculations for different lease types?
A: While the basic formula remains the same, different lease structures (gross lease, net lease, etc.) may require adjusting what costs are included in the "total lease" amount.