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Cost-to-Occupy Calculator: What a Commercial Lease Really Costs
Two spaces quoted at the same rent can cost very different amounts once CAM, taxes, insurance, increases, free rent and the build-out are counted. Type the terms of each space and compare them on the effective cost per square foot over the term, which is the only figure that makes a triple-net quote and a gross quote comparable.
Compare the Spaces · (786) 914-1017
Base Rent Is Not the Rent
Under a triple-net (NNN) lease the tenant pays its share of the property taxes, the insurance and the common area maintenance on top of base rent; a modified gross lease includes some of them; a full-service lease includes them all. Always ask for last year's actual CAM, tax and insurance charges per square foot, and for what the landlord estimates for next year, before comparing quotes.
Increases, Free Rent and the Allowance
A three percent annual increase on a five-year lease raises the final year's rent by about twelve percent. Two months of free rent on a five-year term lowers the effective rent by about three percent. An improvement allowance that covers your build-out is worth its full amount in cash; one that covers half leaves you paying the rest before you open. The calculator spreads all of these over the term.
Compare on Effective Cost
The effective annual cost per square foot over the term, with everything in, is the figure to compare across spaces. A tenant representative negotiates each of these terms, not just the rate; see how tenant representation works, and have a Florida real estate attorney review the lease before you sign.
Compare the Spaces
The calculator on this page takes: rentable square feet, base rent, CAM, taxes and insurance per square foot, annual increases and term, free rent and the improvement allowance, the build-out the space needs.
Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.
Frequently Asked Questions
- What does NNN mean on a listing?
- Triple net: you pay base rent plus your proportionate share of property taxes, building insurance and common area maintenance. The listing quotes the base rent only; the three nets are added, and they can be a quarter or more of the total.
- What is a rentable versus usable square foot?
- Usable is the space inside your walls; rentable adds your share of the lobbies, corridors and restrooms (the load factor). Rent is charged on rentable square feet, so a 3,000 rentable-foot suite may give you about 2,600 usable feet.
- Is free rent better than a lower rate?
- Free rent helps cash flow while you build out and open; a lower rate helps every month of the term. The calculator shows the effective cost either way so you can choose on the figures.
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- Gross, Modified Gross and Triple-Net Leases
- CAM Charges Explained
- Tenant Improvement Allowance
- Personal Guarantees
- From Letter of Intent to Lease
- Zoning and the Certificate of Use
- Phase I Environmental Site Assessment
- SBA 504 Loans for Owner-Users
- Opportunity Zones in Florida
- The Live Local Act for Owners
- Commercial Closing Costs in Florida
- Commercial Property Tax in Florida
- Lease or Buy Your Business's Space?
- How Commercial Property Is Valued