Commercial Lease Calculator

The Commercial Lease Calculator estimates the monthly and total cost of leasing commercial real estate — office space, retail space, or industrial property. It accounts for base rent, Common Area Maintenance (CAM) or triple-net (NNN) charges, and annual rent escalation to give you a complete picture of your occupancy cost over the lease term.

Commercial leases are fundamentally different from residential leases. They are typically quoted in annual dollars per square foot, with additional charges for operating expenses. A $25/sq ft rent on 2,000 square feet means $50,000 per year or $4,167 per month in base rent — but that is rarely the whole story. CAM charges, property taxes, insurance, and utilities can add 30-50% to the base rent.

The three main commercial lease types are: Gross Lease (landlord pays most operating expenses, included in rent), Modified Gross (some expenses shared), and Triple Net (NNN) (tenant pays property taxes, insurance, and maintenance in addition to base rent). NNN leases quote lower base rents but have higher total costs when additional charges are included.

Annual rent escalation is a standard feature of commercial leases, typically 2-4% per year. On a 5-year lease at 3% escalation, your Year 5 rent is approximately 12.6% higher than Year 1. Over the full term, escalation adds significantly to your total cost — this calculator accounts for it using the geometric series formula for growing payments.

Understanding total occupancy cost is critical for business planning. Real estate is typically the second-largest business expense (after payroll), and lease commitments of 3-10 years represent substantial financial obligations. Use this calculator to budget accurately and compare different spaces, lease structures, and terms.