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
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
| Year | Base rent | NNN | Total |
|---|---|---|---|
| 1 | $45,000 | $15,000 | $60,000 |
| 2 | $46,350 | $15,000 | $61,350 |
| 3 | $47,741 | $15,000 | $62,741 |
| 4 | $49,173 | $15,000 | $64,173 |
| 5 | $50,648 | $15,000 | $65,648 |
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 →