Total occupancy cost of an office/shop. The Commercial Lease Cost Calculator takes leased area (sq ft), base rent per sq ft per year, common area and maintenance charges per sq ft per year, utilities and services per month, lease term, annual rent escalation and returns total occupancy cost over the term plus first-year cost, average monthly cost over the term, first-year all-in cost per sq ft. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Property returns depend on assumptions about rent, occupancy, costs and appreciation that are easy to make optimistic. Enter conservative figures and remember that transaction costs, taxes and vacancy periods are real. Use the worked example below to check the maths against your own figures.
How the Commercial Lease Cost Calculator works
Base rent is only part of occupancy cost: common-area charges, utilities and yearly escalation add 20–40%. Compare spaces on total cost per sq ft over the whole term.
Worked example
With the example values (leased area (sq ft) of 2000, base rent per sq ft per year of $40, common area and maintenance charges per sq ft per year of $8, utilities and services per month of $800, lease term of 3 years, annual rent escalation of 3%), the total occupancy cost over the term is $326,399.04; first-year cost $105,600.00, average monthly cost over the term $9,066.64, first-year all-in cost per sq ft $52.80. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is total occupancy cost over the term calculated?
yearly cost = area × (rent + CAM) + utilities × 12, escalating each year; total = sum over the term.
Which figures do I need?
Leased area (sq ft), base rent per sq ft per year, common area and maintenance charges per sq ft per year, utilities and services per month, lease term, annual rent escalation. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Which costs are easy to forget?
Vacancy periods, maintenance, property tax, insurance, brokerage on purchase and sale, and stamp duty. Include them for a realistic return.
