Price per Square Foot

Purchase price divided by the property's rentable square footage — used to compare properties across a market.

Price per square foot (PPSF) is a quick normalization metric that allows apples-to-apples comparison between properties of different sizes.

Price per Sq Ft = Purchase Price ÷ Total Square Footage

PPSF varies enormously by market, asset type, and condition:

Primary markets (NYC, SF): $500–$2,000+/sqft
Secondary markets: $150–$400/sqft
Tertiary markets: $80–$200/sqft

For multifamily, investors also track price per unit (purchase price ÷ number of units) alongside PPSF to assess deal quality relative to market comps.

Related Terms

Cap Rate

Capitalization Rate — annual return on a property if purchased all-cash.

ARV

After-Repair Value — estimated market value of a property after renovations are complete.

Absorption Rate

The rate at which available properties in a market are sold or rented over a given period.