How Do I Calculate Rent on a Commercial Lease?

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Most (some states are different) commercial rents are quoted on an annual basis by square footage rate.

  • Total Square Feet x Price Per Square Foot = Total Annual Rental Rate

As an example, $40.00 per square foot is your annual rental rate, and if your commercial space is 2500 square feet, it will look like this:

  • $40.00 / per sq. ft. x 2500 sq. ft. = $100,000 per year annual rent

  • $100,000 / annual rent divided by 12 = $8,333.33 monthly rent

Also, with Commercial Real Estate, no single lease structure is the same, but they tend to fall into three types:

  • Triple Net (NNN)

  • Full-Service Gross (FSG)

  • Modified Gross (MG)

If you need help with any aspect of Commercial Real Estate, feel free to reach out to me, and I will be happy to assist you.