1. What is Commercial Lease Payment?

Commercial lease payment is the monthly amount a business pays to rent commercial space. It's typically calculated from the annual rent, which is based on the square footage of the space and the price per square foot.

2. How Does the Calculator Work?

The calculator uses the commercial lease formula:

Where:

• Square Footage — Total area of the leased space in square feet
• Price per Square Foot — Annual rental rate per square foot
• 12 — Months in a year for conversion to monthly payment

Explanation: The formula first calculates the total annual rent, then divides by 12 to get the monthly payment.

3. Importance of Lease Payment Calculation

Details: Accurate lease payment calculation helps businesses budget for real estate costs and compare different commercial space options.

4. Using the Calculator

Tips: Enter the total square footage of the space and the annual price per square foot. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include additional lease costs?
A: No, this calculates base rent only. Additional costs like CAM charges, taxes, and insurance may apply.

Q2: What's a typical price per square foot?
A: Varies by location and property type, ranging from $10-$100+/sq ft/year in most markets.

Q3: How does lease term affect payments?
A: Longer leases may have lower annual rates but this calculator assumes a fixed annual rate.

Q4: What about triple net leases?
A: This calculator doesn't account for NNN expenses which are typically additional to base rent.

Q5: How accurate is this calculation?
A: It provides the basic monthly rent calculation but actual lease terms may vary based on negotiations.