Commercial Lease Calculator
Calculate your monthly and annual commercial rent costs, including CAM and square footage rates.
Understanding Commercial Lease Calculations
Calculating a commercial lease is significantly different from residential rentals. Most commercial properties—whether retail, office, or industrial—are priced based on an annual rate per square foot rather than a flat monthly fee. This calculator helps business owners and real estate investors quickly translate those rates into manageable monthly budgets.
How to Calculate Your Commercial Rent
The standard formula for calculating a commercial lease is:
(Total Square Footage × Annual Rate per SF) / 12 Months = Monthly Base Rent
However, the "Base Rent" is often only part of the story. Most commercial leases are Net Leases (NNN), where the tenant also pays for Common Area Maintenance (CAM), property taxes, and insurance.
Key Terms to Know
- Square Footage (SF): The usable or rentable area of the space.
- Annual Rate per SF: The dollar amount charged per square foot per year.
- CAM Charges: Common Area Maintenance fees for shared spaces (lobby, parking, landscaping).
- Triple Net (NNN): A lease structure where the tenant pays base rent plus their pro-rata share of taxes, insurance, and maintenance.
- Gross Lease: A lease where the landlord covers all operating expenses; the tenant pays one flat fee.
Example Calculation
Imagine you are leasing a 1,500 sq. ft. office space at an annual rate of $20.00 per SF, with CAM charges estimated at $3.00 per SF annually ($375 monthly).
| Item | Calculation | Total |
|---|---|---|
| Annual Base Rent | 1,500 SF × $20.00 | $30,000.00 |
| Monthly Base Rent | $30,000 / 12 | $2,500.00 |
| Monthly CAM | Fixed/Estimated | $375.00 |
| Total Monthly Due | $2,500 + $375 | $2,875.00 |
Why Use This Calculator?
Before signing a multi-year commercial contract, you must understand the total financial commitment. A $20/SF rate might sound affordable, but when you factor in 5,000 square feet and CAM charges over a 5-year term, the "Total Commitment" can be substantial. Use our commercial lease calculator to avoid surprises and ensure your business cash flow can support the new location.