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Finance Calc Kit
Real estate

Commercial Lease Calculator

Calculate commercial lease costs including base rent, NNN expenses, cost per square foot, and total lease commitment.

Lease inputs

sq ft
$/ sq ft / yr
$/ sq ft / yr
years
%

Initial monthly rent

$6,250.00

Total lease commitment (5 years)

$393,548.15

Year-one rent split

Base rent$60,000.00
NNN / operating expenses$15,000.00
Total annual rent$75,000.00
Report tool

How the commercial lease calculator works

This tool estimates commercial rent from lease area, base rent per square foot, and NNN operating expenses. It shows initial monthly and annual rent, the blended rate per square foot, and the total lease commitment over the full term when base rent escalates each year. All math runs in your browser.

Triple-net (NNN) leases pass property taxes, insurance, and maintenance to the tenant on top of base rent. To compare a lease against buying, use the lease vs buy calculator. For residential rent affordability, try the 3x rent calculator. If you are modeling net effective rent after concessions, open the net effective rent calculator. When a tenant moves in mid-month, calculate partial rent with the prorated rent calculator. For residential leasing fees paid to brokers, estimate splits with the rental commission calculator.

Commercial lease rent formulas

Year-one annual rent combines base rent and NNN charges:

Annual Rent=(Area×Base Rate)+(Area×NNN Rate)\text{Annual Rent} = (\text{Area} \times \text{Base Rate}) + (\text{Area} \times \text{NNN Rate})

Initial monthly rent divides year-one annual rent by 12. Total lease commitment sums each year of base rent after escalation plus the annual NNN charge:

Total Commitment=∑t=1n(Base Rentt+NNN1)\text{Total Commitment} = \sum_{t=1}^{n} \left( \text{Base Rent}_t + \text{NNN}_1 \right)

Base rent in year t grows by the annual escalation percentage. NNN is held flat unless you change the rate manually.

Worked example: 2,500 sq ft, $24 base, $6 NNN, 5 years, 3% escalation

  1. Year-one base rent: 2,500 x $24 = $60,000
  2. Year-one NNN: 2,500 x $6 = $15,000
  3. Year-one annual rent: $60,000 + $15,000 = $75,000
  4. Initial monthly rent: $75,000 / 12 = $6,250.00
  5. Five-year total commitment: $393,548.15 with 3% annual base rent escalation

Frequently asked questions

What is an NNN commercial lease?
An NNN (triple-net) lease requires the tenant to pay base rent plus property taxes, insurance, and common area maintenance, usually quoted as an additional per-square-foot annual rate.
Does the calculator include rent-free periods or TI allowances?
No. This version models straight base rent escalation and flat NNN. Use the net effective rent calculator if you need to net concessions against headline rent.
How is total lease commitment calculated?
The tool sums each year of escalating base rent plus the initial annual NNN charge across the full lease term you enter.
Can I compare leasing to buying the property?
Yes. Run the same occupancy cost here, then open the lease vs buy calculator to compare against mortgage payments, equity buildup, and ownership costs.
Are the results stored?
No. Changing the fields only updates the page URL so you can copy and share your inputs.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.