What is RevPAF in Commercial Real Estate?
What is RevPAF?
In commercial real estate, RevPAF is shorthand for Revenue per Available Foot (sometimes also referred to as “Revenue per Available Square Foot” or “RevPAS”). It is a performance metric that measures the amount of revenue a property (or portfolio) generates relative to its available rentable area.
How It’s Calculated
For example, if a commercial property has 100,000 rentable square feet and generates $2 million in revenue over a given period, its RevPAF would be:
Why It Matters
- Benchmarking and Comparison: RevPAF allows property owners, investors, and managers to compare performance across different properties or portfolios on a standardized, per-square-foot basis.
- Revenue Optimization: By monitoring RevPAF, landlords can make strategic decisions about leasing, pricing, or property improvements to increase total revenue from the available space.
- Market Insight: Tracking changes in RevPAF can help stakeholders identify shifts in demand or market conditions—if RevPAF trends upward, it may indicate a strong market; if it drops, it could signal oversupply or reduced demand.
RevPAF shows how effectively a property’s square footage is being monetized and is often used alongside other metrics (like occupancy rates, net operating income, or cap rates) for a more comprehensive view of asset performance in commercial real estate.
