How is cost per square foot for construction generally determined in the Comparative Unit Method?

The determination of cost per square foot in the Comparative Unit Method is primarily based on dividing the total cost of recently constructed properties by their square footage. This approach provides a benchmark figure that reflects current market conditions, making it easier to compare the construction costs of different projects or properties. By using the cost per square foot derived from similar properties, evaluators can assess the value of a subject property in relation to the market, which aids in providing accurate appraisals. This method highlights the relationship between the total cost of construction and the area of the space, facilitating a straightforward comparison across various construction projects while accounting for differences in design, materials, and location.