Enter the total area leased and the rent rate per unit area into the commercial lease calculator. The calculator will display the total rent for the same time period as the rate you enter (for example, monthly or yearly).

Commercial Lease Calculator

Enter any 2 values to calculate the missing variable

Note: Rent rate and total rent must use the same time basis (e.g., per month or per year). This calculator can convert between ft² and m².

Commercial Lease Formula

The following formula is used to calculate the total rent (for the same time period used in the rent rate).

R = A * RR
  • Where R is the total rent for the time period used in RR (e.g., per month or per year)
  • A is the square footage or total area
  • RR is the rent rate per unit of area (e.g., $/ft² or $/m², per month or per year)

To calculate the total rent for a given period (monthly, yearly, etc.), multiply the area by the rent rate for that same period.

It’s important to note that the area unit does not have to be square feet. Just make sure the rent rate is stated per the same area unit (for example, $/m² if you are using m²), and for the same time basis (per month or per year).

Commercial Lease Definition

A commercial lease is a contract between a landlord (lessor) and a tenant (lessee) that grants the tenant the right to use commercial space under specified terms (such as rent, lease term, and responsibilities).

How to calculate commercial lease?

How to calculate a commercial lease

  1. Determine the area of the unit

    Measure and total the area of the space to be leased (for example, in square feet or square meters).

  2. Determine the rent rate per unit of area

    Determine the market rent rate per unit area (often quoted per square foot or per square meter, per month or per year) by reviewing comparable leases, broker quotes, or an appraisal.

  3. Calculate the total rent

    Multiply the rent rate per unit area by the total area to get the total rent for that same time period.

FAQ

What is a commercial lease?

A commercial lease is a legal agreement between a landlord (lessor) and a tenant (lessee) for the rental of commercial space. Rent is often quoted per unit area (for example, $/ft² or $/m²) and is commonly stated on a monthly or yearly basis.

What is a good price per unit area?

A “good” rent rate depends on factors like location, property type, lease term, tenant improvements, and market conditions. A commercial real estate broker or appraiser can help estimate a fair market rent by analyzing comparable properties and recent leases.