Price per square foot is how you compare buildings of different sizes on an even footing, and this free calculator gives it to you instantly. Enter the total price and the square footage, and you have your price per foot.
It is a simple number, but it is one of the most useful in commercial real estate because it normalizes everything. A $2,000,000 building and a $5,000,000 building are impossible to compare directly until you break them down per square foot. Here is the tool, then how to use it well.
Price per square foot, in one line: it is the total price divided by the building's square footage, a per-unit number that lets you compare properties of different sizes.
Compare like to like: only compare price per foot within the same property type and market. Office, retail, and industrial trade at very different per-foot numbers.
The Price Per Square Foot Formula
The formula is price per square foot = total price ÷ square footage. A 20,000 square foot building priced at $3,000,000 works out to $150 per square foot. That single number lets you line it up against every other building you are considering.
Be careful which square footage you use. Gross, rentable, and usable square footage are different, and mixing them up will throw your comparison off. Use the same measurement standard across every property you compare.
How to Use Price Per Square Foot
Per-foot pricing is most powerful as a comparison tool within one property type and one market. Industrial, office, and retail all trade at very different per-foot numbers, so comparing across them tells you nothing. Within a category, though, price per foot quickly flags what is cheap and what is expensive, and it pairs naturally with rent per square foot to see whether the pricing and the income line up. I break down how to think in per-foot terms here.
Watch: How to Calculate Commercial Rent [Price Per Square Foot Simplified]
Price Per Square Foot FAQ
How do you calculate price per square foot?
Divide the total price by the square footage. A $3,000,000 building of 20,000 square feet is $150 per square foot.
What square footage should I use?
Use a consistent standard across every property you compare, whether that is gross, rentable, or usable square feet. Mixing measurement types makes the comparison meaningless.
Is a lower price per square foot always better?
Not necessarily. A lower price per foot can reflect a worse location, older construction, or lower rents. Always pair price per foot with the income the space produces.
Does price per square foot work across property types?
No. Office, retail, industrial, and flex all trade at very different per-foot numbers, so only compare within the same property type and market.
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Explore CRE CentralPair this with the rent per square foot calculator to see if the pricing and income line up, or browse all the commercial calculators.