Why Price Per SF Still Matters
In a world of complex pro formas and ML-driven valuation models, price per square foot remains the first metric every CRE professional checks. It's the universal sanity test — does this deal trade in line with the submarket, at a discount, or at a premium?
The CREDDS Undervaluation Signal
Our proprietary CREDDS (Commercial Real Estate Distress & Undervaluation Detection System) flags 20%+ discounts to submarket comps as a meaningful undervaluation signal — one of three weighted dimensions that drive a property's Opportunity Score. But a low price per SF alone isn't enough: it must be corroborated with NOI strength, occupancy, and condition data.
Comp Selection — Garbage In, Garbage Out
Reliable comps share the property's submarket, vintage (±10 years), asset class, and transaction date (last 12–18 months). The wrong comp produces the wrong conclusion. For Orlando MSA submarkets we recommend pulling at least 5–7 comparable transactions before computing a median.
Price Per Unit (Multifamily)
For multifamily, price per unit often matters more than price per SF — because unit count drives revenue more than building size. A 200-unit Class B garden in Orlando might trade at $185K/unit; the same building in Lake Nona at $310K/unit.
Pair this with the Cap Rate Calculator, the GRM Calculator, and the NOI Calculator for the complete valuation triangulation.