Commercial Lease Calculator – Calculate Space Cost

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Trying to figure out how to calculate your monthly warehouse, retail or office space rent can sometimes be confusing. Some properties quote monthly rates while others quote yearly triple net lease rates. Using the space cost calculators Austin Tenant Advisors created below can help you estimate these costs. If you want to know more about Austin office space for lease give us a call.

Why We Created the Commercial Lease Calculator

This commercial rent calculator is a helpful tool for tenants who are leasing commercial real estate. Landlords will quote you lease rates on a price per square foot basis whether they are monthly or yearly, however to most tenants this can be confusing. All you care about is what you total monthly rent is going to be on the real estate you’re leasing whether it be office buildings, retail spaces, or warehouse space.

When leasing commercial space you are going to hear a lot of terms thrown around in the lease contract such as cash flow, cap rate, maintenance costs, property taxes, gross leases, nnn lease, area maintenance, etc. If you are not familiar with this terminology then it would be a good idea to hire an experienced agent or grab a handbook on leasing commercial real estate. Commercial leases are calculated on a price per square foot because most commercial rental properties can be divided or made into one larger space. It would be nice if the property owner or it’s real estate professionals would just tell you what your total monthly lease payments will be however that would not tell you how big the space is.

Understanding How Landlords Quote Rates 

 Most lease contracts will be triple net leases (NNN), meaning the business tenant must pay a base rate + NNN (taxes, insurance, maintenance). Landlords quote lease rates differently depending on the type of real estate investment, state/city located, or just their preference. In most cases retail space such as shopping malls and office space will be quoted as yearly rates (e.g. $35 + $10nnn). Industrial real estate assets are mostly quoted as monthly rates (e.g. $.0.85 + $0.30nnn), however some will quote them as yearly rates as well.
 

How to Calculate Monthly Rent

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