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Lease Square Foot Formula:
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Lease square footage calculation determines the amount of space being leased based on the total lease amount and the rate per square foot. This is essential for commercial real estate transactions to understand the actual space being paid for.
The calculator uses the formula:
Where:
Explanation: This simple division calculates the total square footage being leased based on the financial terms of the agreement.
Details: Accurate calculation of leased square footage is crucial for comparing property values, budgeting for space needs, negotiating lease terms, and understanding the true cost of occupied space.
Tips: Enter the total lease amount in dollars and the rate per square foot in dollars per square foot. Both values must be positive numbers.
Q1: Does this calculation include common area maintenance fees?
A: No, this calculation is based solely on the base lease amount and rate. Additional fees like CAM, taxes, and insurance would need to be considered separately.
Q2: How does this differ from usable square footage?
A: This calculation gives you the total leased square footage, which may include a portion of common areas. Usable square footage refers only to the space exclusively occupied by the tenant.
Q3: Should I use annual or monthly rates?
A: Ensure consistency in your inputs. If using an annual rate per square foot, the total lease amount should also be annual. The same applies for monthly calculations.
Q4: How accurate is this calculation for comparing properties?
A: This provides a good baseline comparison, but you should also consider factors like building class, location, amenities, and lease terms when comparing properties.
Q5: Can this calculator be used for residential leases?
A: While the formula works the same, residential leases typically quote monthly rates rather than square foot rates, making this calculation less common for residential properties.