The cost of renting commercial space is often expressed as a rate per square foot. This metric provides a standardized way to compare lease expenses across different properties. It is calculated by dividing the total annual rental cost by the property’s usable square footage. For example, a space leasing for $50,000 annually with 2,000 square feet of usable area has a price of $25 per square foot.
Understanding this cost benchmark is critical for businesses seeking commercial real estate. It facilitates informed decision-making by enabling accurate comparisons between available spaces. A firm grasp of the price facilitates budget planning and ensures that lease negotiations are grounded in factual cost assessments. Historically, this method has streamlined the process of evaluating properties, reducing the ambiguity associated with varied lease structures and property sizes.