Commercial Lease Calculator
Calculate total monthly rent for different commercial lease types. Choose between Gross, Net, or Percentage lease structures.
Lease Details
Understanding Commercial Leases
Lease Types Explained
- Gross Lease: Tenant pays fixed rent; landlord covers all property expenses
- Net Lease: Tenant pays base rent + property expenses (taxes, insurance, maintenance)
- Percentage Lease: Tenant pays base rent + percentage of monthly sales
Calculation Formulas
- Gross Lease: Total Rent = Base Rent
- Net Lease: Total Rent = Base Rent + Taxes + Insurance + Maintenance
- Percentage Lease: Total Rent = Base Rent + (Sales × Percentage Rate)
Real-World Examples
Example 1: Gross Lease Office Space
Scenario: 1,000 sqft office with $2,500/month gross lease
Calculation: $2,500 (base rent) = $2,500 total
Example 2: Net Lease Retail Store
Base Rent: $3,000 | Taxes: $400 | Insurance: $150 | Maintenance: $200
Calculation: $3,000 + $400 + $150 + $200 = $3,750 total
Example 3: Percentage Lease Clothing Store
Base Rent: $1,500 | Sales: $50,000 | Rate: 5%
Calculation: $1,500 + ($50,000 × 0.05) = $4,000 total
Example 4: Mixed Use Percentage Lease
Base Rent: $2,000 | Sales: $75,000 | Rate: 3%
Calculation: $2,000 + ($75,000 × 0.03) = $4,250 total
Example 5: Triple Net Lease
Base Rent: $4,000 | Taxes: $600 | Insurance: $300 | Maintenance: $500
Calculation: $4,000 + $600 + $300 + $500 = $5,400 total
Frequently Asked Questions
1. What's the difference between Gross and Net leases?
Gross leases include all expenses in base rent, while Net leases add property expenses.
2. When are percentage leases typically used?
Common in retail for businesses with variable income (malls, shopping centers).
3. What's included in "additional costs" for Net leases?
Typically property taxes, insurance, and maintenance (CAM charges).
4. How is percentage rent calculated?
Percentage of monthly sales over a threshold (base rent + % of excess sales).
5. Can leases combine multiple types?
Yes, some leases combine base rent + percentage + partial expenses.
