Commercial Lease Calculator
Calculate commercial lease payments for NNN, gross, and modified gross leases.
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This calculator helps you estimate the total monthly cost of a commercial lease based on the lease structure. Here is how to use it:
- Enter the square footage. This is the total leasable area you are renting. Check your lease agreement or listing for the exact number, which may include a common area factor (load factor).
- Enter the price per square foot. This is the annual rate per square foot quoted by the landlord. Commercial rents are almost always quoted on an annual per-sqft basis, not monthly.
- Select the lease type. Triple Net (NNN) means the tenant pays base rent plus CAM, property tax, and insurance. Gross means the landlord covers all expenses. Modified Gross means the tenant pays base rent plus CAM charges only.
- Enter expense amounts. For NNN leases, fill in the annual CAM charges, property tax, and insurance. For Modified Gross, only CAM is used. For Gross leases, these fields are hidden because the landlord pays them.
Results update instantly as you type. Use the Share button to send a pre-filled link to your broker or partner, or Copy to grab the monthly payment figure.
About Commercial Lease Types
Commercial leases differ significantly from residential leases. The three main structures are Triple Net (NNN), Gross, and Modified Gross. In a Triple Net lease, the tenant pays base rent plus all three "nets": common area maintenance (CAM), property taxes, and insurance. This is the most common structure for retail and industrial spaces because it gives the landlord a predictable income stream while passing variable costs to the tenant.
A Gross lease bundles everything into one payment. The landlord handles all operating expenses and factors them into the quoted rent. This is simpler for tenants but typically comes at a higher per-sqft rate. Modified Gross leases split the difference, with the tenant usually responsible for CAM charges while the landlord covers taxes and insurance.
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Frequently Asked Questions
What is the difference between NNN and gross lease?
In a Triple Net (NNN) lease, the tenant pays base rent plus property taxes, insurance, and common area maintenance (CAM) charges separately. In a gross lease, the landlord includes all operating expenses in the quoted rent, so the tenant pays one flat amount. NNN leases typically have a lower base rent because expenses are billed separately, while gross leases have a higher base rent that covers everything. NNN is more common for retail and industrial space, while gross leases are common in multi-tenant office buildings.
What are typical commercial lease rates per square foot?
Commercial lease rates vary widely by location, property type, and market conditions. In the U.S., retail space might range from $15 to $50+ per square foot annually in suburban areas, while prime urban locations can exceed $100 per sqft. Office space typically ranges from $20 to $60 per sqft in most markets. Industrial and warehouse space is generally the most affordable, often $5 to $15 per sqft. Always check local comparable listings for accurate benchmarks in your market.
What are CAM charges in a commercial lease?
CAM stands for Common Area Maintenance. These charges cover the costs of maintaining shared spaces in a commercial property, such as parking lots, lobbies, elevators, landscaping, snow removal, and exterior lighting. CAM charges are typically billed on a pro-rata basis according to the tenant's share of the total leasable area. In NNN and modified gross leases, tenants pay CAM as a separate line item on top of base rent. Annual CAM charges commonly range from $3 to $10 per square foot depending on the property.
How can I negotiate a better commercial lease?
Start by understanding the lease type and what is included. Request a cap on annual CAM increases (typically 3-5% per year) to avoid surprise cost jumps. Negotiate free rent or reduced rent during your build-out period, especially for new spaces that need tenant improvements. Ask for a tenant improvement (TI) allowance where the landlord contributes to your build-out costs. Compare the total occupancy cost (base rent plus all expenses) across multiple properties rather than focusing on base rent alone. Finally, consider hiring a tenant rep broker, as their commission is typically paid by the landlord.