Has anyone here made compared comps on similar product that has smaller average unit sizes?
Have one building with rents at $2.66 PSF but avg units of 585, and another with average units of 789 and rents at $2.45 - would like to compare the 789 units at an equivalent $2.66 PSF price point.
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You focus on the SF in order to create an "apples to apples" comparison.
So the 789 sf unit have room to grow, while the 585 sf at @ $2.66 psf are the top.
Well located smaller units often command higher pricing per square foot because the overall unit price point or lease rate is in line with slightly larger units. "Affordability through size" and why micro units are trending.
Completely understood, and that's why i looked at it on a per unit basis after seeing the rents. The bigger units are making roughly $4,500 more annually.
Thoughts on any other ways to look at it?
Reconcile the rents on both a per square foot basis ($/SF) and a total rent per month basis ($/month). Viewing this from two points of view helps considerably!
Do they both have the same finishings (Granite, stainless steel appliances, backsplash)? Do they both have washer & dryer?
Normally true. What's surprising is that the inverse (higher price PSF for larger unit size) is true in select core markets where tenants (for office, would represent big box of space, or full building users, for resi it would represent the largest penthouses, or best units in the building) put a premium on larger units.
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