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Calcimator

Dental Office Lease Calculator

Calculate per-operatory occupancy cost from lease terms, buildout, TI allowance, and CAM charges.

About this calculator

Cost per Operatory per Month divides Year 1 occupancy cost (base rent plus CAM/NNN charges) by Number of Operatories, so adding operatories to the same leased space lowers the per-operatory figure even though nothing about the lease itself changed -- the same total rent is simply spread across more treatment rooms. Number of Operatories, Square Footage, Base Rent, and CAM/NNN all move this figure meaningfully -- a mechanical property of a ratio with one shared denominator and several numerator-side terms, not a ranking of which lease decision matters most.

Lease Term Years, Annual Rent Escalation, Buildout Cost per SF, and TI Allowance per SF have zero effect on Cost per Operatory per Month specifically, since that figure is deliberately a Year 1 snapshot before any escalation compounds and before buildout costs are amortized -- those four inputs instead drive Total Lease Cost, Total Occupancy Cost, and Avg Monthly (Full Term), which spread costs across the entire lease horizon rather than reporting a single starting-year number. A practice comparing two spaces on Cost per Operatory per Month alone should also check Avg Monthly (Full Term), since a lower Year 1 number can be offset by a steeper escalation rate or a larger buildout gap over the full lease.

Inputs

%

Results

Cost / Operatory / Month

$1,100.00

Total Monthly (Year 1)$5,500.00
Base Monthly Rent$4,167.00
Monthly CAM/NNN$1,333.00
SF per Operatory400
Net Buildout Cost$100,000.00
Total Buildout Cost$160,000.00
Total Lease Cost$505,723.00
Total Occupancy Cost$605,723.00
Avg Monthly (Full Term)$7,211.00
Final Year Monthly Rent$4,975.00
How to Use This Calculator
  1. Enter the Square Footage and Base Rent ($/SF/Year) for the space under consideration.
  2. Add CAM/NNN charges per square foot and the Lease Term in years.
  3. Set the Annual Rent Escalation (%) and Buildout Cost per square foot.
  4. Enter the TI Allowance per SF and Number of Operatories planned.
  5. Review Total Monthly (Year 1), Cost per Operatory per Month, and total lease obligations to compare spaces.

How the result changes with Number of Operatories

Number of OperatoriesCost / Operatory / Month
2.5$2,200.00
3.75$1,467.00
7.5$733.00
13$423.00

What each input means

Square Footage
Total leasable square footage of the dental office.
Base Rent ($/SF/Year)
Annual base rent per square foot. Medical/dental office space typically ranges $18-40/SF.
CAM/NNN ($/SF/Year)
Annual common area maintenance and NNN charges per square foot.
Lease Term (Years)
Length of the lease in years. Dental leases are typically 5-10 years.
Annual Rent Escalation
Annual percentage increase in base rent. Typically 2-4%.
Buildout Cost ($/SF)
Cost per square foot for dental-specific buildout (plumbing, electrical, cabinetry). Typical range $60-150/SF.
TI Allowance ($/SF)
Tenant improvement allowance from landlord per square foot.
Number of Operatories
Number of treatment rooms/operatories in the office.

What each result means

Cost / Operatory / Month
Monthly occupancy cost allocated per operatory.
Total Monthly (Year 1)
Total monthly occupancy cost in the first year including CAM.
Base Monthly Rent
Monthly base rent before CAM/NNN charges.
Monthly CAM/NNN
Monthly common area maintenance charges.
SF per Operatory
Square footage allocated per operatory (industry target: 350-500 SF).
Net Buildout Cost
Buildout cost after TI allowance.
Total Buildout Cost
Total buildout cost before TI allowance.
Total Lease Cost
Total rent + CAM paid over the entire lease term with escalation.
Total Occupancy Cost
Total lease cost plus net buildout over the full term.
Avg Monthly (Full Term)
Average monthly cost including amortized buildout over full lease term.
Final Year Monthly Rent
Monthly base rent in the last year of the lease after escalation.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    8 parameters
    Square Footage = 2000, Base Rent ($/SF/Year) = 25, CAM/NNN ($/SF/Year) = 8, Lease Term (Years) = 7, Annual Rent Escalation = 3, Buildout Cost ($/SF) = 80, TI Allowance ($/SF) = 30, Number of Operatories = 5 = 8 input(s) provided
  2. Calculate Cost / Operatory / Month
    Cost / Operatory / Month = totalMonthlyYear1 / numOperatories
    1100 = $1,100
  3. Calculate Total Monthly
    Total Monthly = baseMonthlyRent + monthlyCam
    5500 = $5,500
  4. Calculate Base Monthly Rent
    Base Monthly Rent = baseAnnualRent / 12
    4167 = $4,167

Engine last updated . Checked against 1 independently-derived test — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.

Frequently Asked Questions

Why does adding more operatories lower the Cost per Operatory per Month figure?

Cost per Operatory per Month is calculated by dividing the total Year 1 monthly occupancy cost (base rent plus CAM/NNN) by Number of Operatories, so spreading the same fixed monthly cost across more treatment rooms mechanically lowers the per-operatory share. This does not mean the space itself became cheaper -- Total Monthly (Year 1) stays the same regardless of how many operatories that space is divided into.

Does Annual Rent Escalation affect Cost per Operatory per Month?

No -- Cost per Operatory per Month is a Year 1 snapshot that does not include any escalation, so Annual Rent Escalation has zero effect on it. Escalation instead compounds into Total Lease Cost, Total Occupancy Cost, and Avg Monthly (Full Term), which account for rent increases across the entire lease term rather than reporting only the starting-year figure.

Why doesn't Buildout Cost per SF show up in Cost per Operatory per Month?

Buildout Cost per SF (offset by TI Allowance per SF) feeds Net Buildout Cost and Total Occupancy Cost, which capture the one-time construction expense amortized across the lease, but Cost per Operatory per Month only reflects recurring Year 1 rent and CAM charges. A space with an expensive buildout and a low base rent can show a deceptively low Cost per Operatory per Month while carrying substantial one-time costs visible only in Total Occupancy Cost.

What should I check besides Cost per Operatory per Month when comparing two lease options?

Avg Monthly (Full Term) is the more complete comparison figure, since it folds in rent escalation over the full Lease Term Years and amortizes the net buildout cost after TI Allowance, both of which Cost per Operatory per Month ignores entirely. Two spaces with identical Year 1 costs per operatory can diverge substantially in Avg Monthly (Full Term) if one has a steeper escalation rate or a larger buildout gap.

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