How to Calculate the Monthly Rent of a Commercial Lease

Save

Commercial leases can set up base rental schedules in several different ways. Whether you have a monthly or yearly lease rate listed in your lease document, you can easily calculate the full amount of your monthly rent if you also know the amount of your property's operating expenses and your space's rentable square footage.

  • If your lease rate is spelled out in the lease document on yearly basis, identify the lease rate for the particular year and divide the amount by 12 to calculate your monthly base rental rate per square foot.

  • If your operating expenses are charged on yearly basis, identify the operating costs for the particular year and divide the amount by 12 to calculate your monthly operating expense rate per square foot. Operating expenses are often referred to as triple-net, or NNN rates.

  • Add together the monthly base rental rate and the monthly operating expense rate.

  • Multiply the amount by your rentable square footage. The will be your monthly rental cost.

Tips & Warnings

  • Your lease document will not list the operating expense rate because the expense rate will change from year to year depending on taxes, energy costs and changes in service costs. Contact your property manager if you are unsure of your operating expense rate.

References

  • Photo Credit Jupiterimages/BananaStock/Getty Images
Promoted By Zergnet

Comments

You May Also Like

  • How to Calculate Commercial Rent per Square Foot

    Commercial tenants usually pay one of two types of rent: gross or net. Gross rent is a flat rate that includes maintenance,...

  • How to Calculate Operating Costs

    Operating costs are the sum of a business' fixed costs or overhead plus its variable costs. Calculating operating costs tells you how...

  • How to Rent a Commercial Property

    Finding and signing a lease on a commercial property for rent can be long and arduous. It is highly recommended to work...

  • How to Calculate Office Space Rent

    Understanding and calculating average office space rent is critical in accurately reporting rent expense for accounting purposes. Calculating office rent per usable...

  • How to Rent Commercial Space

    Securing a commercial lease that suits your needs can be a complex and involving affair. Unlike residential leases, renting a commercial space...

  • How to Calculate a Commercial Lease

    If you are looking for space for a new business, or if you are taking a business out of the home and...

  • Operating Expense Ratio Analysis

    Operating expense ratio analysis usually refers to investment properties, such as apartment buildings and commercial real estate. In this context, the ratio...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!