Convert between total rent and per-square-foot rates. Compare lease rates across properties and calculate total annual occupancy cost for commercial spaces.
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The standard metric for comparing commercial lease rates.
Commercial leases are typically quoted as annual rent per square foot. A $30/SF annual rate = $2.50/SF monthly. Always clarify whether a quoted rate is annual or monthly. Office and retail leases use annual PSF; some residential and industrial markets quote monthly.
NNN (Triple Net): Tenant pays base rent + taxes + insurance + maintenance. Gross: Landlord covers all expenses. Modified Gross: Split between both. A $25 NNN lease might cost $35–$40 all-in, while a $35 gross lease includes everything. Always compare on an all-in basis.
Rentable SF includes your space plus a share of common areas (lobbies, hallways). Usable SF is your actual space. The load factor (rentable ÷ usable) is typically 1.10–1.20x. A 2,000 usable SF office might be 2,300 rentable SF. You pay rent on rentable SF.
If your rent PSF exceeds the mortgage payment PSF on a comparable building, ownership may be smarter. Many businesses discover they can own for the same or less than they lease — plus build equity. Our advisors model the buy-vs-lease comparison for free.
Every calculator we offer, in one place — run the next number your lender will ask about.
Common questions about commercial rent rates.
Annual Rent PSF = (Monthly Rent × 12) ÷ Rentable Square Feet. Example: $5,000/month rent on 2,500 SF = $60,000/year ÷ 2,500 = $24/SF annually.
It varies enormously by market and property type. Office in NYC: $50–$100+/SF. Suburban office: $18–$35/SF. Industrial: $6–$15/SF. Retail: $20–$60/SF. Compare with local market data for your specific property type and submarket.
Always compare on an all-in basis. Convert NNN to gross by adding estimated operating expenses ($8–$15/SF for most properties). A $20 NNN lease with $12/SF expenses = $32/SF all-in. Compare that to a $30 gross lease — the NNN is actually more expensive.
Usable SF is your actual space. Rentable SF adds a pro-rata share of common areas. The ratio (load factor) is typically 1.10–1.20x. You pay rent based on rentable SF. When comparing spaces, ask which measurement is being used.
Consider buying when: your business is stable with 5+ year horizon, monthly mortgage would be similar to rent, you want to build equity, you need customized space, or rents in your market are rising fast. SBA 504 loans offer 10% down for owner-occupied purchases.
We run buy-vs-lease analyses showing total cost of ownership vs leasing over your planned timeline. If buying makes sense, we match you with the best CRE loan program. Our advisory is completely free.
Whether leasing or buying, our advisors help you make the best real estate decision for your business.
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