Commercial Real Estate Lease Calculator
Estimate monthly office, retail, or industrial costs. Supports NNN, Modified Gross, and Full Service leases with rent escalation logic.
About
Commercial Real Estate (CRE) leases differ fundamentally from residential agreements. Rent is often quoted annually per square foot, and additional costs like Common Area Maintenance (CAM), taxes, and insurance can double the effective monthly payment. This tool addresses the complexity of Triple Net (NNN) versus Full Service Gross leases.
Prospective tenants must calculate the "Effective Rent" which accounts for Tenant Improvement (TI) allowances and annual compounding escalations. A lease starting at $25/sqft might effectively cost $32/sqft by year 5 due to 3% annual bumps. This calculator aggregates base rent, operating expenses (OpEx), and amortization of TI allowances to project true occupancy costs.
Formulas
The calculator derives the Monthly Total Rent for any given year t.
Annual Base Rent:
Rentt = SqFt × BaseRate × (1 + Escalation)t-1
NNN / OpEx:
OpExtotal = SqFt × (CAM + Tax + Ins)
Monthly Payment:
Monthly = Rentt + OpExtotal12
Note: In Full Service Gross leases, OpEx is typically 0 (included in base), whereas in NNN, the tenant pays all OpEx.
Reference Data
| Metro Area | Avg. Office Rent (Class A) | Avg. Retail Rent | Avg. NNN OpEx |
|---|---|---|---|
| New York (Manhattan) | $75.00 / sqft | $120.00 / sqft | $28.00 / sqft |
| San Francisco | $68.00 / sqft | $55.00 / sqft | $22.00 / sqft |
| Austin, TX | $45.00 / sqft | $35.00 / sqft | $14.00 / sqft |
| Chicago | $38.00 / sqft | $28.00 / sqft | $16.00 / sqft |
| Atlanta | $32.00 / sqft | $25.00 / sqft | $10.00 / sqft |
| National Avg (Industrial) | $9.50 / sqft | - | $3.50 / sqft |