SMB Tools / Commercial Lease Analyzer
The real cost of the lease
The per-square-foot quote is the start, not the cost. Add the escalations, the NNN, the free-rent concession, and the build-out, and see the true total, and the effective rent that lets you compare two spaces fairly.
The space
Square footage
sf
Base rent (per sf / year)
$
NNN / CAM (per sf / year)
$
The terms
Annual escalation
%
Lease term
years
Free rent
months
Upfront
Build-out (out of pocket)
$
Year 1 rent / month$5,000
Can the business carry it?
Monthly revenue you expect (optional)
$
Total cost over 5 years
$346,411
effective $5,774/mo · $46.19/sf/yr all-in
- Year 1 / month
- $5,000
- Free rent value
- $7,500
- Build-out
- $40,000
Years
Year 12 free
Year 2
Year 3
Year 4
Year 5
Per month
$5,000
$5,113
$5,228
$5,348
$5,471
Total base rent$238,911
Total NNN / CAM+$75,000
Less free rent-$7,500
Plus build-out+$40,000
Total over term$346,411
A planning estimate. Real cost turns on the NNN reconciliation and renewal terms. Have a tenant broker and attorney review the lease. See what rent does to breakeven →