How to Figure the Monthly Base Rent for an Office Lease

Determine the cost per square foot of office space to compare to other commercial leases.

It's important to determine the monthly base rent for your office space to make sure you're getting the best rates and for other budgeting purposes. You can compare your rate with other office leases in the area to see if there's a more economical space. From an accounting perspective, it's important to know your base rental rate to keep track of operating costs accurately.

Things You'll Need

• Lease statement or contract

Instructions

1. Examine your lease agreement. If it gives a figure for the total annual cost for your lease, divide that number by 12 to get your monthly cost.

2. Determine the square footage of your office. Certain lease agreements list cost per square foot, either per month or per year. Multiply the cost per square foot by the number of square feet of office space you have to get your total cost. If you only have information for the cost per square foot per year, divide the number by 12 to get a monthly total.

3. Review your monthly expenses. Find the number you spend each month on office operating costs and subtract all expenses for utilities, supplies and other expenses that aren't the rental payments. The number you have left after all other expenses are subtracted is the approximate monthly rental fee.

Tips & Warnings

• If you're having a hard time calculating the monthly office rental cost, call the office leasing company or landlord and ask for an exact number. They should be able to calculate it for you or send you a copy of your current lease agreement so you can calculate the cost yourself.

References

• Commercial Office Advisors: Calculate Space Cost
• Office Finder: The Office Leasing Process