Annual rent per m² for contracts
What is it?
The KPI shows the total annual rental cost per square meter for ongoing leases. It is calculated by dividing the total annual rent for active contracts by the total lettable area. This information provides a direct indication of the average rental level per square meter and is used to assess and compare rental structures across different areas or properties.
How is it calculated?
Annual rent totaled for active contracts / Number of square meters
* Includes only those contracts where the start and end dates are on each side of the specified time. ** If a time period is selected, this KPI always shows the last day of the period (except if it is in the future; then today is shown).
Why is it important to follow?
Following the KPI is essential for several reasons:
Rent strategy: By monitoring this key figure, property owners and managers gain insight into the average rent level per square meter for ongoing leases. It facilitates the development of an effective rental strategy and adaptation to market changes.
Comparisons and market analysis: The key figure enables comparisons between different properties and areas. It provides insights into how the rent level relates to the market and facilitates the identification of possible adjustments or improvements to rental structures.
Investment decision: For investors, this key figure is important when assessing the profitability of a property and to make informed investment decisions.
Effective property management: The information supports effective property management by providing an overall picture of the rental structure and facilitates strategic decisions to optimize income and costs.
In summary, the KPI provides important information for optimizing rental structures, making strategic decisions and ensuring financial sustainability in property management.
Created by Homepal
1/25/2024
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