Commercial Lease Cost Calculator

Estimate the total cost of a commercial lease including base rent, CAM charges, operating expenses, and other fees over the lease term.

Rentable Square Footage (sq ft)

Base Rent Rate ($ per sq ft per year)

Lease Term (months)

CAM Charges ($ per sq ft per year)

Insurance ($ per sq ft per year)

Property Tax ($ per sq ft per year)

Annual Rent Escalation (%)

Free Rent Period (months)

Security Deposit (months of base rent)

Monthly Base Rent (Year 1):
Monthly Base Rent = (Base Rate × Sq Ft) ÷ 12

Annual Escalation (Step-Up):
Monthly Base Rent_{year n} = Monthly Base Rent_{year 1} × (1 + Escalation%)ⁿ⁻¹

Total Base Rent over Lease Term:
Sum of monthly base rent for each month (waived during free rent period)

Monthly NNN Charges:
NNN Monthly = (CAM + Insurance + Property Tax) × Sq Ft ÷ 12

Security Deposit:
Security Deposit = Security Months × Year 1 Monthly Base Rent

Total Lease Cost:
Total = Total Base Rent + Total NNN Charges + Security Deposit

Effective Annual Cost:
Effective Annual Cost = (Total Base Rent + Total NNN) ÷ Lease Term in Years

Effective Cost per Sq Ft / Year (PSF):
Effective PSF = Effective Annual Cost ÷ Sq Ft

Triple Net (NNN) Lease: CAM, insurance, and property tax are passed through to the tenant in addition to base rent, as is standard in commercial NNN leases (BOMA International).
Annual Step-Up: Rent escalation is applied at the start of each new lease year using compound growth, consistent with standard commercial lease escalation clauses.
Free Rent: Base rent is fully waived during the free rent period; NNN charges still apply (typical landlord concession structure).
Security Deposit: Calculated as a multiple of the first month's base rent; may be refundable at lease end and is included in total cost for cash-flow planning purposes.
Rentable vs. Usable Area: This calculator uses rentable square footage, which includes a proportionate share of common areas (load factor). Verify with your lease agreement.
CAM Charges: Common Area Maintenance charges typically range from $3–$12 PSF/year depending on property type and market (CBRE, JLL market reports).
Escalation Rates: Annual rent escalations of 2–4% are common in U.S. commercial leases (CoStar Group).
This calculator provides estimates only. Consult a licensed commercial real estate broker or attorney before signing any lease.

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