1. What is the Square Footage Lease Calculation?

The square footage lease calculation is a standard method for determining commercial rent based on the area of the leased space and the rate per square foot. This approach is commonly used in office, retail, and industrial leasing.

2. How Does the Calculator Work?

The calculator uses the basic commercial lease formula:

Where:

• \( Area \) — Total leasable area in square feet
• \( Rate\ per\ Sqft \) — Monthly or annual rate per square foot

Explanation: The calculation multiplies the total area by the rate per square foot to determine the base rent amount.

3. Importance of Accurate Lease Calculations

Details: Precise lease calculations are essential for budgeting, comparing properties, and negotiating lease terms. Errors can lead to significant financial consequences over the lease term.

4. Using the Calculator

Tips: Enter the total leasable area in square feet and the rate per square foot. Ensure you know whether the rate is monthly or annual to interpret the result correctly.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculation for monthly or annual rent?
A: The calculator provides the base calculation - you need to specify whether your rate is monthly or annual. Multiply by 12 to convert monthly to annual.

Q2: What's included in the rate per square foot?
A: This varies by lease. Some rates include operating expenses (gross lease), while others are base rent only (net lease).

Q3: How is leasable area measured?
A: Typically measured per BOMA standards - either usable area or rentable area (which includes common space allocations).

Q4: Are there other lease calculation methods?
A: Yes, some leases use percentage rent (retail) or per-unit calculations (industrial), but sqft-based is most common.

Q5: How do I account for rent increases?
A: This calculator provides the base rent. For escalation clauses, you'll need to calculate compounded increases separately.