Commercial Lease Calculator

Multiply the annual rate per square foot by your leased area. Example: a 2,000 sq ft space at $22 per sq ft per year costs $44,000.00 per year, or $4,666.67 per month — before any triple-net add-ons. The per-square-foot rate alone is not your total cost: NNN leases add taxes, insurance, and CAM on top. This calculator is an estimate; review your lease terms with an attorney before signing.

In a triple net (NNN) lease the tenant pays base rent plus a pro-rata share of three categories: property taxes, building insurance, and common area maintenance (CAM). Formula: Total NNN rent = base rent + pro-rata share x (taxes + insurance + CAM). Example: a 2,000 sq ft unit in a 10,000 sq ft building (20% share) with a $22/sq ft base rent and building totals of $30,000 taxes + $10,000 insurance + $20,000 CAM pays $56,000.00 per year in total — 28.00/sq ft, $4,666.67/month — because the $6.00/sq ft NNN add-on sits on top of the $22 base.

In a gross (full-service) lease the landlord pays operating expenses out of one all-in rent, so your cost is predictable. In a net lease you pay a lower base rent plus some or all operating expenses: single net = + property taxes; double net (NN) = + taxes and insurance; triple net (NNN) = + taxes, insurance, and CAM. A modified gross lease splits the difference: you pay a base rent plus any operating expenses above a negotiated base year (expense stop). Example: a $25/sq ft modified gross lease with a $10/sq ft stop costs $27/sq ft when actual expenses hit $12/sq ft. Always compare the all-in cost per square foot, not the headline base rate.

An escalation clause raises rent on a schedule — usually a fixed percentage or a fixed dollar amount per year — so the landlord keeps pace with inflation and rising costs. The increase compounds: rent in year 2 = year 1 x (1 + rate). Example: 2,000 sq ft at $20/sq ft with 3% annual escalation over 5 years runs $40,000.00 in year 1, $45,020.35 in year 5 (22.51/sq ft), for a 5-year total obligation of $277,361.30 — about $4,622.69 per month on average. Model the full term with the escalation schedule mode above before you compare two proposals.

A TI allowance is money the landlord contributes toward customizing your space — walls, flooring, HVAC, and similar build-out costs — usually quoted per square foot. Example: $20/sq ft on a 5,000 sq ft space = $100,000.00. If you use more than the allowance, the extra is often amortized like a loan and added to your monthly rent. For example, amortizing that $100,000.00 over 60 months at 8% APR adds $2,027.64 per month to your rent, or $21,658.40 of interest over the term.

A common planning rule of thumb is 150-250 sq ft per employee, including shared areas — less for dense open plans, more for private offices or labs. Example: 20 employees x 175 sq ft = 3,500 sq ft, with a planning range of 3,000-5,000 sq ft. This is only a starting estimate: headcount growth, meeting rooms, storage, and local code all change the number. Run your target size through the rate converter and lease-type comparison to see what it actually costs.

Free rent (abatement) lowers what you actually pay over the term even when the quoted rate stays the same — net effective rent spreads the total concessions over the full lease term. Because free rent interacts with escalation, TI amortization, and NNN pass-throughs, it is handled in our dedicated effective-rent tool: see the net effective rent calculator for a full concession model. The modes above cover lease-type comparison, escalation, TI amortization, rate conversion, and brokerage commission — all estimates, not legal advice; review your lease with an attorney.