NAI Commercial Central Vancouver Island

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FAQ – How to calculate minimum base rent for a lease

December 30, 2014

By: Louise Turch

First time commercial lease tenants often wonder how to calculate a commercial lease rate.

commercial lease rates

Most commercial leases are typically set at $xx.xx per square foot net of the lease space. These rates are typically a net lease rate and landlord will charge additional rent for operating costs and taxes. A commercial real estate agent can help you understand and determine these additional costs.

For example:
A 2000 square foot space that is quoted at a net rent of $18.00 per square foot

The annual net rent is calculated as follows:
2000 x $18.00 = $36,000 per year

The monthly net rent is calculated simply by taking the annual rent and dividing it by the amount of months in a year (12 months):
$36,000 / 12 = $3,000 per month

For more information on lease rate calculations or any other leasing questions, contact one of our helpful agents.