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What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, Updated Edition, 2nd Edition by Frank Gallinelli

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CHAPTER 27Calculation 21: Price, Income, and Expenses per Square Foot

In the previous chapter, you looked at price, income, and operating expenses per rental unit—measurements that merit your attention primarily because you are likely to encounter property owners and brokers who use these terms from time to time. It is more common, however, and generally more useful to think of commercial property in terms of its square footage.

What It Means

You can consider price, income, and expenses as they relate to a property’s square footage. This relationship is meaningful because you typically rent commercial property by the square foot and because the square foot, unlike a unit, has a more or less constant dimension. If you review the chapter “Building ...

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