Work out the true cost of a commercial lease after free rent, tenant improvement allowance, annual escalations, and NNN charges. Update any input — the effective rent and year-by-year schedule recalculate instantly. Share the URL to send your analysis to a business partner.
| Year | Rent / SF | Base rent | NNN | Concessions | Net year | Cumulative |
|---|
Effective rent is the true per-square-foot cost of your lease after all concessions, escalations, and pass-through costs are accounted for. It's the right number to use when comparing two lease offers.
Formula: (Total base rent + Total NNN − Free rent value − TI allowance total) ÷ Square feet ÷ Term years
Asking rent is what the landlord advertises. Effective rent is what you actually pay. A $40/SF asking rent with 9 months free rent and $50/SF TI on a 7-year term often produces an effective rent in the low $30s — a quarter of the advertised rate never shows up on the rent roll.
This calculator is a negotiation tool. Adjust the inputs to model alternative offers: What happens if I push TI to $65/SF? What if I get 3 more months free rent? What if I shorten the term to 5 years? The effective rent tells you which levers matter most.
This calculator shows you the math. Justin brings the market comps, landlord intel, and negotiation experience that turns numbers on a screen into signed terms on a page.
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