Commercial Lease Calculator

Understanding Commercial Lease Costs

Commercial leases differ significantly from residential leases. Instead of a flat monthly rate, commercial property rentals are usually quoted as an annual rate per square foot plus additional operating charges.

Types of Commercial Leases

• Full Service / Gross Lease: Tenant pays a single rent amount, and the landlord covers property taxes, insurance, and maintenance.
• Triple Net (NNN) Lease: Tenant pays base rent plus their prorated share of property taxes, property insurance, and common area maintenance (CAM).
• Modified Gross Lease: A compromise where tenant and landlord split operating expenses according to the lease agreement.

Commercial Lease Formulas

$$\text{Annual Base Rent} = \text{Area (sq ft)} \times \text{Base Rent Rate per sq ft}$$

$$\text{Annual NNN Expenses} = \text{Area (sq ft)} \times \text{NNN Rate per sq ft}$$

$$\text{Monthly Total Rent} = \frac{\text{Annual Base Rent} + \text{Annual NNN Expenses}}{12}$$