Commercial Lease Cost Calculator
Estimate monthly and annual costs for your business space.
How to Calculate Commercial Lease Costs
Calculating the true cost of a commercial lease is more complex than simply multiplying square footage by a rate. For most commercial properties, rent is quoted as an annual price per square foot. To find your monthly base rent, you multiply the total square footage by the annual rate and divide by 12.
Example Calculation:
If you are leasing a 2,500 sq. ft. office at $30.00 per square foot:
2,500 SF × $30.00 = $75,000 per year.
$75,000 / 12 months = $6,250 per month base rent.
Understanding Triple Net (NNN) vs. Gross Leases
The "Lease Type" significantly impacts your monthly out-of-pocket expenses:
- Triple Net (NNN): The tenant pays base rent PLUS their pro-rata share of property taxes, insurance, and common area maintenance (CAM).
- Full Service Gross: The landlord covers all operating expenses. The tenant pays one flat fee.
- Modified Gross: A middle ground where the tenant might pay base rent plus utilities, but the landlord covers taxes and insurance.
Factor in Annual Escalations
Most commercial leases include an "escalation clause," which increases the base rent annually (typically by 2% to 5% or based on the Consumer Price Index). Our calculator accounts for these compound increases over the life of your lease term to show you the total financial commitment you are making.
Why Square Footage Accuracy Matters
In commercial real estate, there is a difference between "Usable Square Footage" (the space you actually occupy) and "Rentable Square Footage" (which includes your share of common lobbies, hallways, and restrooms). Always calculate your budget based on the Rentable Square Footage provided by the landlord.