If a commercial property has an annual electricity cost of $225,000 and an area of 100,000 SF, what is the electricity cost per square foot?

To determine the electricity cost per square foot, you divide the total annual electricity cost by the total area of the property in square feet.

In this scenario, the total annual electricity cost is $225,000 and the total area of the commercial property is 100,000 square feet. Performing the calculation:

Electricity cost per square foot = Total electricity cost ÷ Total area

= $225,000 ÷ 100,000 SF

= $2.25/SF

This calculation shows that the cost of electricity for each square foot of the commercial property is $2.25. Understanding this metric is crucial for property management as it helps in budgeting and forecasting operational expenses. Costs per square foot are standard measurements in real estate and allow comparisons between properties of different sizes.