# How To Calculate Commercial Lease Rates

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Read the entire lease for the commercial property in question. Then identify and write down the actual size of the leased premises in total square footage (for example, 15,000 square feet). Next, identify the agreed upon square foot rate as defined in the commercial lease (for example, \$10 per square foot annually).

· Here we will discuss and shed some light on Gross Leases versus Triple Net Leases and how they come into play in your commercial lease agreement. The gross lease. lease rates in this method are typically quoted as one figure that describes the dollar amount per square foot per year you will pay for your space (e.g. \$25 Gross).

Source Brookfield Property Partners (NASDAQ: BPY, TSX: BPY.UN) is a diversified global real estate company that owns, operates and develops one of the largest portfolios of office, retail, multifamily.

This commercial lease calculator uses a simple formula to calculate the annual rent: rent = area * rate. where: Area is the total area of the rented space, usually in m or ft; Rate is the total rental rate – rent per m or ft determined by your landlord; Rent is the sum of what you have to pay on an annual or monthly basis. You can also open the advanced mode to split the total rental rate into two numbers: Base rental rate is the rent that covers only the base costs;

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Many commercial leases use BOMA Standards and charge monthly rent based on "Rentable Square Feet," not on Usable Square Feet." This is important to understand because if you are quoted a price of \$1.25 per usable square foot, that may be what you end up actually paying for each month.

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For retail, medical office and industrial, a percentage of rent is typically paid for a commission. A common structure is to pay 6% of the total rent for the first 5 years of the lease, 3% of the total rent for the next 5 years, and 1.5% for the remaining term.