NYC Commercial Lease Cost Calculator

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NYC Commercial Lease Cost Calculator

Estimate the total cost of your NYC commercial lease including base rent, operating expenses (NNN), utilities, and the NYC Commercial Rent Tax (CRT) where applicable.

Rentable Square Footage (sq ft)

Annual Base Rent per Sq Ft ($/sq ft/year)

Annual Operating Expenses / NNN per Sq Ft ($/sq ft/year)

Includes property taxes, insurance, maintenance. Enter 0 for gross lease.

Estimated Monthly Utilities ($)

Lease Term (years)

Annual Rent Escalation Rate (%)

Typical NYC commercial leases escalate 2–4% per year.

Borough / Location

Manhattan (below 96th St) — CRT Applies Manhattan (96th St & above) — CRT Exempt Brooklyn / Queens / Bronx / Staten Island — CRT Exempt

NYC Commercial Rent Tax applies to Manhattan tenants below 96th St with annual rent ≥ $250,000.

Tenant Improvement Allowance ($)

One-time landlord contribution toward build-out. Reduces your effective cost.

Calculate

function nycCalc() { // --- Gather inputs --- var sqft = parseFloat(document.getElementById('nyc-sqft').value); var baseRent = parseFloat(document.getElementById('nyc-base-rent').value); var opex = parseFloat(document.getElementById('nyc-opex').value) || 0; var utilities = parseFloat(document.getElementById('nyc-utilities').value) || 0; var leaseYears = parseInt(document.getElementById('nyc-lease-years').value); var escalation = parseFloat(document.getElementById('nyc-escalation').value) || 0; var borough = document.getElementById('nyc-borough').value; var tia = parseFloat(document.getElementById('nyc-tenant-improvement').value) || 0;

// --- Validation --- var errors = []; if (isNaN(sqft) || sqft 50) errors.push("Annual escalation rate must be between 0% and 50%."); if (utilities 0) { document.getElementById('nyc-result').innerHTML = 'Please fix the following:' + errors.map(function(e){ return ''; }).join('') + ''; return; }

// --- NYC Commercial Rent Tax (CRT) --- // Effective tax rate: 3.9% on annual base rent for qualifying tenants. // Partial tax credit phases in for rents $250,000–$300,000. // Source: NYC Dept of Finance, Admin Code § 11-701 et seq. var CRT_RATE = 0.039; var CRT_THRESHOLD = 250000; var CRT_PHASE_END = 300000;

// --- Year-by-year calculation --- var totalBaseRent = 0; var totalOpex = 0; var totalUtilities = utilities * 12 * leaseYears; var totalCRT = 0; var yearlyData = [];

var annualOpex = opex * sqft; var annualUtilities = utilities * 12;

for (var yr = 1; yr = $250,000 var crt = 0; if (borough === 'manhattan' && annualBase >= CRT_THRESHOLD) { if (annualBase >= CRT_PHASE_END) { // Full CRT crt = annualBase * CRT_RATE; } else { // Phase-in: linear interpolation of credit // Credit = CRT_RATE * annualBase * (1 - (annualBase - 250000) / 50000) var fullCRT = annualBase * CRT_RATE; var creditFraction = 1 - (annualBase - CRT_THRESHOLD) / (CRT_PHASE_END - CRT_THRESHOLD); crt = fullCRT * (1 - creditFraction); } }

var annualTotal = annualBase + annualOpex + annualUtilities + crt;

totalBaseRent += annualBase; totalOpex += annualOpex; totalCRT += crt;

yearlyData.push({ year: yr, base: annualBase, opex: annualOpex, utilities: annualUtilities, crt: crt, total: annualTotal }); }

// Recalculate totalUtilities from loop for consistency totalUtilities = annualUtilities * leaseYears;

var totalLeaseCost = totalBaseRent + totalOpex + totalUtilities + totalCRT; var effectiveCost = totalLeaseCost - tia; // Net of TIA var effectiveAnnual = effectiveCost / leaseYears; var effectiveMonthly= effectiveCost / (leaseYears * 12); var effectivePerSqFt= effectiveCost / (sqft * leaseYears);

// Year 1 figures for quick reference var yr1 = yearlyData[0]; var yr1Monthly = yr1.total / 12;

// --- Format helpers --- function fmt(n) { return '$' + n.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ','); } function fmtInt(n) { return '$' + Math.round(n).toLocaleString(); }

// --- Build year-by-year table --- var tableRows = yearlyData.map(function(d) { return '' + 'Year ' + d.year + '' + '' + fmtInt(d.base) + '' + '' + fmtInt(d.opex) + '' + '' + fmtInt(d.utilities) + '' + '' + fmtInt(d.crt) + '' + '' + fmtInt(d.total) + '' + '' + fmtInt(d.total / 12) + '/mo' + ''; }).join('');

var crtNote = (borough === 'manhattan') ? 'NYC Commercial Rent Tax (CRT) of 3.9% applies (Manhattan below 96th St, rent ≥ $250,000). Phase-in credit applied where applicable.

'
'NYC Commercial Rent Tax does not apply to your selected location.

';

var tiaNote = tia > 0 ? 'Tenant Improvement Allowance of ' + fmtInt(tia) + ' deducted from total cost.

'
'';

document.getElementById('nyc-result').innerHTML = '### Results ' +

'' + 'Year 1 Monthly Cost' + fmtInt(yr1Monthly) + '' + 'Year 1 Annual Cost' + fmtInt(yr1.total) + '' + 'Total Lease Cost (' + leaseYears + ' yr)' + fmtInt(totalLeaseCost) + '' + 'Net Cost After TIA' + fmtInt(effectiveCost) + '' + 'Effective Annual Cost' + fmtInt(effectiveAnnual) + '' + 'Effective Monthly Cost' + fmtInt(effectiveMonthly) + '' + 'Effective Cost / Sq Ft / Yr' + fmt(effectivePerSqFt) + '' + 'Total CRT Paid' + fmtInt(totalCRT) + '' + '' +

crtNote + tiaNote +

'#### Year-by-Year Breakdown ' + '' + '' + 'YearBase RentNNN / OpEx' + 'UtilitiesCRTAnnual TotalMonthly' + '' + '' + tableRows + '' + '' + 'Total' + '' + fmtInt(totalBaseRent) + '' + '' + fmtInt(totalOpex) + '' + '' + fmtInt(totalUtilities) + '' + '' + fmtInt(totalCRT) + '' + '' + fmtInt(totalLeaseCost) + '' + '—' + '' + ''; }

#### Formulas Used

Annual Base Rent (Year N): Base RentN = (Base Rent/sq ft) × (Sq Ft) × (1 + Escalation Rate)N−1

Annual Operating Expenses: OpEx = (NNN Rate/sq ft) × (Sq Ft) — constant each year unless renegotiated

Annual Utilities: Utilities = Monthly Utilities × 12

NYC Commercial Rent Tax (CRT): — Applies only to Manhattan tenants below 96th St with annual base rent ≥ $250,000 — Full rate: CRT = Annual Base Rent × 3.9% — Phase-in credit (rents $250,000–$300,000): CRT = Full CRT × [(Annual Rent − $250,000) / $50,000] — Source: NYC Admin Code § 11-701; NYC Dept of Finance

Annual Total Cost (Year N): TotalN = Base RentN + OpEx + Utilities + CRTN

Total Lease Cost: Total = Σ Annual TotalN for N = 1 to Lease Term

Net Cost After TIA: Net Cost = Total Lease Cost − Tenant Improvement Allowance

Effective Cost per Sq Ft per Year: = Net Cost / (Sq Ft × Lease Term)

#### Assumptions & References

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