Figuring out the price of actual property primarily based on its space offers a standardized metric for evaluating properties. This includes dividing the entire month-to-month rental cost by the usable space, usually expressed in sq. ft. As an example, an area renting for $3,000 per 30 days with a usable space of 1,000 sq. ft yields a determine of $3.00.
This calculated determine provides a precious benchmark for assessing the relative affordability and worth of various areas. It permits potential tenants or companies to objectively evaluate the prices related to numerous areas, unbiased of the general dimension of the property. Moreover, understanding this valuation technique facilitates knowledgeable decision-making in lease negotiations and budgeting for occupancy bills. Its constant utility offers a clear view of area-based pricing, changing probably subjective evaluations.