Commercial rents are usually quoted per square foot per year. In a triple-net (NNN) lease the tenant also pays a share of taxes, insurance and maintenance on top of base rent. Leases often include yearly escalations of 2–4%.
How to use the Commercial Lease Calculator
- Area
- Base rental rate (per ft² per year)
- Operating expenses (per ft² per year)
- Lease duration
- Annual rent escalation
- Agent commission (% of total base rent)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the area, base rent and operating expenses per square foot per year, the lease term, annual escalation and broker commission.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Area | Units: ft², m² |
| Base rental rate (per ft² per year) | Amount in your currency |
| Operating expenses (per ft² per year) | Amount in your currency |
| Lease duration | In years |
| Annual rent escalation | In % |
| Agent commission (% of total base rent) | In % |
What each result means
- Total rental rate (per ft² per year) = [Base rental rate (per ft² per year)] + [Operating expenses (per ft² per year)]
- Rent – first year = [Area]×([Base rental rate (per ft² per year)] + [Operating expenses (per ft² per year)])
- Rent – first month = [Rent – first year]÷12
Example values
How the main result changes when Area changes and everything else stays at the example values above:
| Area (ft²) | Rent – first year |
|---|---|
| 1,500 | 61,500 |
| 2,250 | 92,250 |
| 3,000 | 123,000 |
| 3,750 | 153,750 |
| 4,500 | 184,500 |
| 6,000 | 246,000 |
Formula
Total rental rate = base rent + operating expenses (per ft² per year)Annual rent = area × total rental rateTotal lease cost = annual rent × years (with yearly escalation)Broker fee = commission % × total base rentWorked example
Inputs — Area: 3,000 ft²; Base rental rate (per ft² per year): $32; Operating expenses (per ft² per year): $9; Lease duration: 5 years; Annual rent escalation: 3 %; Agent commission (% of total base rent): 5 %.
Results — Total rental rate (per ft² per year) = $41.00; Rent – first year = $123,000.00; Rent – first month = $10,250.00; Total rent over the lease = $644,677.04; Agent commission = $25,483.85.
Frequently asked questions
How is commercial rent calculated?
Area × rent per square foot per year.
What is a triple-net lease?
The tenant pays base rent plus taxes, insurance and maintenance.
Who pays the broker?
Usually the landlord, as a percentage of the total lease value.
What formula does the Commercial Lease Calculator use?
Total rental rate = base rent + operating expenses (per ft² per year).