Which unit of comparison is most commonly applied to a downtown commercial site?

Correct Answer

A) Price per square foot of land area

Why this is correct: Price per square foot of land area is the most common unit of comparison for a downtown commercial site. Value in such markets is closely tied to the buildable area, which is a function of the land's square footage and zoning allowances (like floor-area ratio). This unit provides a precise measure for comparing small, valuable urban parcels. Why the other choices are wrong: "Price per acre of the total parcel" is too coarse a measure for typically small downtown lots. "Price per dwelling unit permitted" is used for residential land, not commercial. "Price per front foot of the lot" is historically used for retail properties where frontage is critical, but for general downtown commercial use, square footage is more comprehensive. Exam tip: The unit of comparison should reflect what drives value in that specific market.