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Calcimator

Lease Negotiation Calculator

Calculate total occupancy cost from lease terms, escalation, free rent concessions, TI allowances, and CAM charges.

Inputs

%

Results

Total occupancy cost ($)

$996,370.37

≈ 24 Teslas

Effective monthly rent ($)$13,272.84
Effective rent ($/sq ft/year)$39.85
Total concessions ($)$0.00
Free rent value ($)$0.00
TI allowance total ($)$0.00
Final year annual rent ($)$168,826.32
How to Use This Calculator
  1. Enter Base Rent and proposed concessions (free rent months, TI allowance).
  2. Set Lease Term and Rent Escalation % per year.
  3. Review Net Effective Rent — the true average rent after amortizing concessions over the term.
  4. Compare landlord proposals using Net Effective Rent for apples-to-apples comparison.
  5. A longer lease term typically unlocks better concessions — model multiple term lengths.

How the result changes with Lease term (years)

Lease term (years)Total occupancy cost ($)
2.9$579,635.00
7.65$1,639,850.41
13$2,862,668.57
18$4,232,165.31

What each input means

Space size (sq ft)
Rentable square footage of the leased space.
Base rent ($/sq ft/year)
Annual base rent per square foot. Check local comps for market rate.
Lease term (years)
Total lease duration in years.
Annual escalation (%)
Annual rent increase, typically 2-4% or CPI-linked.
Free rent (months)
Months of free/abated rent. Typical concession: 1 month per year of lease term.
TI allowance ($/sq ft)
Tenant improvement allowance per square foot provided by landlord.
CAM charges ($/sq ft/year)
Common Area Maintenance and operating expenses per sq ft per year.

What each result means

Total occupancy cost ($)
Total cost over the lease term including base rent, CAM, minus free rent.
Effective monthly rent ($)
Average monthly base rent after spreading free rent concession over paying months.
Effective rent ($/sq ft/year)
Net effective annual rent per square foot including all costs and concessions.
Total concessions ($)
Combined value of free rent and tenant improvement allowance.
Free rent value ($)
Dollar value of the free rent months concession.
TI allowance total ($)
Total tenant improvement allowance from the landlord.
Final year annual rent ($)
Annual base rent in the last year of the lease term (with escalation).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Space size (sq ft) = 5000, Base rent ($/sq ft/year) = 30, Lease term (years) = 5, Annual escalation (%) = 3 = 7 input(s) provided
  2. Calculate Total occupancy cost
    Total occupancy cost = totalBaseRent + totalCam - freeRentValue
    996370.37 = $996,370.37
  3. Calculate Effective monthly rent
    Effective monthly rent = payingMonths > 0
    13272.84 = $13,272.84
  4. Calculate Effective rent
    Effective rent = payingMonths > 0
    39.85 = $39.85

Engine last updated .

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