Determining the rental cost based on area involves dividing the total monthly rental amount by the property’s total square footage. For example, if a commercial space rents for $3,000 per month and comprises 1,000 square feet, the resulting figure is $3.00. This indicates the price associated with each square foot of that specific property for a month.
This calculation allows for standardized comparison across diverse properties, regardless of their overall size or monthly cost. It enables prospective tenants to effectively compare different listings and landlords to establish competitive rates based on the market. Historically, this method offers a straightforward means to evaluate property value relative to its physical footprint, contributing to fairness and transparency in leasing agreements.