The price of renting industrial house is usually expressed as a fee per sq. foot. This metric offers a standardized technique to evaluate lease bills throughout totally different properties. It’s calculated by dividing the full annual rental price by the property’s usable sq. footage. For instance, an area leasing for $50,000 yearly with 2,000 sq. ft of usable space has a value of $25 per sq. foot.
Understanding this price benchmark is important for companies looking for industrial actual property. It facilitates knowledgeable decision-making by enabling correct comparisons between out there areas. A agency grasp of the value facilitates finances planning and ensures that lease negotiations are grounded in factual price assessments. Traditionally, this technique has streamlined the method of evaluating properties, lowering the paradox related to assorted lease buildings and property sizes.