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Commercial lease calculator

Turn a commercial rent quotation per unit of area into monthly lease costs and a negotiated agent fee.

Calculator

Total monthly rent
$5,000.00
Total annual rent
$60,000.00
Monthly base rent
$3,333.33
Monthly additional rent
$1,666.67
Total annual rate per quoted area unit
$30.00
Agent fee
$3,000.00
Area in quoted units
2,000.00
Annual base rate per quoted area unit
$20.00
Annual additional rate per quoted area unit
$10.00
Agent commission percentage
5.0000%
Months used for fee
12.00

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How this calculator works

Commercial quotations often express base and additional rent as annual amounts per square foot. This calculator adds those two rates, multiplies by the quoted area and divides by twelve. The agent fee is a negotiated percentage of a stated number of months of total rent. Taxes, stepped rent, parking and fit-out costs require separate budgeting.

Formula

Annual rent = area × (annual base rate + annual additional rate). Monthly rent = annual rent / 12. Agent fee = monthly rent × fee months × commission percentage.

Worked example

For 2,000 square feet at $20 base rent plus $10 additional rent per square foot annually, rent is $60,000 a year or $5,000 monthly. A 5% fee on twelve months is $3,000.

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Frequently asked questions

Are the rates monthly or annual?

The input rates are annual. Convert a monthly quotation to an annual rate before entering it.

What is additional rent?

It can include the lease's allocated operating costs, property taxes or insurance. The signed lease determines what is charged.

Does a gross lease need additional rent?

Enter zero if the quoted gross rent already includes those costs, so that they are not counted twice.

Sources

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