Enter the total area leased and the rental rate per unit area into the commercial lease calculator. The calculator will display the total rent per month and year.

Commercial Lease Formula

The following formula is used to calculator the commercial lease amount.

R = A * RR

  • Where R is the rent per year or month
  • A is the square footage or total area
  • RR is the rental rate per unit of area i.e. per square foot

It’s important to note that the area unit does not have to be a square foot. If you want to use a different unit just make sure the rental rate is also in that same unit.

Commercial Lease Definition

A commercial lease is defined as the total lease value of a property or rental unit based on the size and rental rate per unit area.

How to calculate commercial lease?

How to calculate a commercial lease

  1. Determine the area of the unit

    This will take measuring and totaling the total square footage of the entire building or portion to be leased.

  2. Determine the rent rate per unit of area

    This is typically done by an appraiser whose job is to accurately measure market rates for commercial properties.

  3. Calculate the total rent

    Multiply the rent per area time the total area to get your total rent per unit time.

FAQ

What is a commercial lease?

A commercial lease is a financial agreement between a leaser and lender to pay a certain rate per month per unit of are. Typically commercial buildings are priced by their cost per unit of area. This standardizes much of the field and helps both prospective buyers and sellers to get proper prices on buildings.

What is a good price per unit area?

The only person that can answer that question properly is a commercial real estate appraiser. It’s their job to measure similar rates offered at similar buildings to provide you with an accurate rate.

commercial lease calculator
commercial lease formula