Commercial Property Rent Calculator - NNN & Gross Lease
Calculate commercial lease costs including base rent, NNN (triple net), CAM charges, and utilities. Compare your rate to market averages and project total lease costs.
Space & Base Rent
Market: $20-$60/SF
Additional Expenses ($/SF/Year)
Lease Cost Summary
Monthly Rent (Year 1)
$8,646
$103,750/year
Market Comparison
~ Within Market
Market range: $20-$60/SF
Total Lease Cost (5 years)
$549,277
~16 employees @ $6,484/employee/yr
Commercial Lease Types Explained
Gross Lease (Full Service)
Landlord pays all operating expenses. Tenant pays one flat rent amount.
Tenant Pays: Base rent only
Landlord Pays: Taxes, insurance, CAM, utilities
Best For: Tenants wanting predictable costs
Triple Net (NNN) Lease
Tenant pays base rent plus property taxes, insurance, and maintenance.
Tenant Pays: Base + taxes + insurance + CAM
Landlord Pays: Structural repairs only
Best For: Long-term tenants, retail
Modified Gross Lease
Hybrid lease where some expenses are shared between landlord and tenant.
Tenant Pays: Base + some expenses (varies)
Landlord Pays: Remaining expenses
Best For: Negotiated arrangements
Commercial Rent Rates by Property Type (2025)
| Property Type | Low ($/SF/Yr) | Average | High | Typical NNN |
|---|---|---|---|---|
| Class A Office | $30 | $45 | $80+ | $8-15 |
| Class B Office | $20 | $30 | $45 | $6-12 |
| Retail (Strip Mall) | $18 | $28 | $45 | $8-14 |
| Industrial/Flex | $8 | $12 | $20 | $2-5 |
| Warehouse | $6 | $10 | $16 | $1-3 |
| Medical Office | $25 | $40 | $70 | $10-18 |
*Rates vary significantly by location. Major metros (NYC, SF, LA) can be 2-3x higher.
What's Included in NNN (Triple Net) Expenses?
Property Taxes
Your pro-rata share of the building's property taxes based on square footage.
Typical Cost: $2-8/SF/year
Note: Can increase annually with reassessments
Insurance
Building insurance (not your business liability insurance).
Typical Cost: $1-3/SF/year
Note: Higher in flood/hurricane zones
CAM (Common Area Maintenance)
Shared costs for parking lots, landscaping, lobbies, elevators, security.
Typical Cost: $4-12/SF/year
Note: Ask for CAM cap in lease
Frequently Asked Questions
What does NNN mean in commercial real estate?
NNN stands for "Triple Net" lease, where the tenant pays three additional costs on top of base rent: property taxes (N), building insurance (N), and common area maintenance/CAM (N). This is the most common lease structure for retail and industrial properties.
How do I calculate commercial rent per square foot?
Divide your total annual rent by the square footage. For example, if you pay $5,000/month for 2,000 SF: ($5,000 × 12) ÷ 2,000 = $30/SF/year. For NNN leases, add the NNN expenses to get your "effective" or "all-in" rate.
What is a good commercial lease rate?
A "good" rate depends on location, property type, and market conditions. Generally, aim for rates at or below market average for your area. Office space typically runs $20-50/SF, retail $18-40/SF, and industrial $8-15/SF. Always compare all-in costs, not just base rent.
Should I negotiate a CAM cap?
Yes! A CAM cap limits how much your CAM charges can increase each year (typically 3-5%). Without a cap, landlords can pass through unlimited expense increases. Also negotiate to exclude capital expenditures and management fees from CAM calculations.