Landlord Lease Economics
Commercial Lease Revenue & Effective Rent Calculator
Model base rent, scheduled increases, abatements, discounts, tenant-improvement allowances, leasing costs, and renewal options—then estimate total revenue, net effective rent, and the starting rent needed to reach a target return.
Commercial Lease Revenue & Effective Rent Calculator
Model scheduled rent, concessions, landlord investment, option periods, effective rent, and the starting rent needed to reach a target return.
Disclaimer: This calculator is a proposal-analysis tool, not a lease, accounting determination, appraisal, tax opinion, or guarantee of option exercise or rent collection.
Landlord lease economics
Commercial Lease Revenue Report
Primary assumptions
Calculation summary
Detailed income, expenses, or costs
Compare every amount with current source documents and confirm exclusions, allocations, and local requirements with qualified professionals.
This report is an informational estimate only and is not financial, tax, legal, lending, appraisal, or escrow advice.
How the Commercial Lease Calculator Works
The calculator builds a monthly rent schedule for the committed base term. It applies the selected rent quotation, escalation interval, abatements, discounts, TI allowance, leasing commission, and other landlord costs.
- Scheduled base rent: Contract rent before abatements and discounts.
- Collected base rent: Scheduled rent after concessions.
- Gross effective rent: Collected base-term rent converted to annual dollars per rentable square foot.
- Net effective rent: Collected rent less landlord investment, converted to annual dollars per rentable square foot.
Example Lease Analysis
For 10,000 rentable square feet at $30/SF/Year, a five-year base term, 3% annual increases, three free months, a $35/SF TI allowance, a 5% leasing commission, and $5,000 of legal costs, scheduled base rent is approximately $1.593 million. Collected rent is approximately $1.518 million, and net effective rent is approximately $21.74/SF/Year.
Base Term and Options
Committed base-term revenue is reported separately from renewal-option revenue. Each option can use a percentage increase from the prior rent or a directly quoted starting rent, its own annual escalation, and a planning probability. Probability weighting is a scenario tool and does not predict whether an option will be exercised.
Using the Target Rent Solver
Enter a target net effective annual rent to estimate the required starting base rent while holding the other lease assumptions constant. This helps compare tradeoffs among starting rent, free rent, TI, commissions, and escalation structure during proposal negotiations.
Frequently Asked Questions
Can rent be entered per square foot or as a flat amount?
Yes. Choose annual dollars per square foot, monthly dollars per square foot, monthly flat rent, or annual flat rent.
Can abatements occur after lease commencement?
Yes. Each concession has a start month, end month, and either a percentage or flat monthly value.
Are option periods included in base-term effective rent?
No. Options are shown separately because they are not part of the committed base term and may not be exercised.
Does the calculator include CAM or NNN reimbursements?
This version focuses on base-rent economics and landlord concessions. Operating-expense reimbursements should be analyzed separately unless they are expressly converted into a base-rent adjustment.
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Disclaimer: This calculator provides an informal proposal analysis only. It is not a lease, accounting determination, appraisal, tax or legal opinion, or guarantee of rent collection or option exercise. Confirm all economic and legal terms in the executed lease and with qualified professionals.