Leased area
5,000 SF
The rentable area used under the lease and measurement standard.
Free lease tool
NNN Lease Calculator
Estimate triple net base rent, taxes, insurance, maintenance charges, all-in monthly occupancy cost, rent escalations, and broker commissions. Use the lease—not the NNN label—to verify who pays each expense.
- All-in rent
- Base + NNN
- Common quote
- $/SF/year
- Monthly conversion
- 12 months
- Lease types
- N / NN / NNN
Property Details
Enter your commercial lease details
sq ft
years
Most commercial leases include annual rent escalations of 2-3%
Operating Expenses (NNN Costs)
Additional costs passed through to tenant (per sq ft/year)
Total Operating Expenses
$7.50/sq ft/year
Calculation Results
Your estimated commercial lease costs
Monthly Base Rent
$5,208
Monthly NNN Costs
$1,563
Total Monthly Rent
$6,771
Total Annual Rent
$81,250
Total Lease Cost (10 years)
$931,440
Effective Rate
$32.50/sq ft/year
Avg Cost per SF
$37.26/sq ft/year
Core calculation
How to calculate triple net lease costs
Commercial rent is often quoted per square foot per year. Add each annual expense rate before converting the total to a monthly amount.
Annual NNN occupancy cost
Area × (Base Rent + Taxes + Insurance + CAM)
Enter every rate in the same unit and annual period. If expenses are provided as whole-dollar budgets, allocate them according to the tenant's proportionate share before adding them.
Average monthly cost
Annual Occupancy Cost ÷ 12
This is an average. Actual invoices may follow monthly estimates with annual reconciliation, and tax or insurance installments can create uneven cash timing.
Worked example
NNN rent calculation example
Assume 5,000 square feet, $24.00/SF annual base rent, and $7.50/SF in combined taxes, insurance, and maintenance.
Base rent
$120,000
5,000 SF multiplied by $24.00 per square foot per year.
NNN charges
$37,500
5,000 SF multiplied by $7.50 per square foot per year.
Monthly total
$13,125
$157,500 annual all-in occupancy cost divided by 12 months.
Lease structures
Gross, single net, double net, and triple net
Labels are shorthand. Definitions vary across markets and documents, so review the expense, repair, replacement, casualty, condemnation, and capital-work clauses.
Gross lease
Landlord generally pays operating expenses from rent, sometimes subject to a base year or expense stop.
Single net (N)
Tenant generally pays base rent and property taxes; other costs remain with the landlord.
Double net (NN)
Tenant generally pays base rent, property taxes, and building insurance.
Triple net (NNN)
Tenant generally pays base rent, taxes, insurance, and maintenance, subject to negotiated exclusions.
Due diligence
Questions to answer before trusting the estimate
The biggest occupancy-cost surprises usually come from lease language, allocation methods, or deferred property work rather than the arithmetic.
- Is area measured as usable, rentable, gross, or another standard?
- How is the tenant's proportionate share calculated and can it change?
- Are management or administrative fees added to CAM?
- Which capital costs can be passed through and over what amortization period?
- Are controllable expenses capped and what is excluded from the cap?
- Who pays for roof, structure, HVAC, parking, and replacements?
- How do free rent, rent steps, options, and percentage rent affect the term?
- What reconciliation statements and audit rights does the tenant receive?
Escalations and commissions
Model the full lease term—not just year one
Contractual rent bumps compound occupancy cost and property income. Commission agreements may use total base rent, stepped percentages, or market-specific schedules.
Fixed annual escalation
Future Rent = Starting Rent × (1 + Escalation Rate)ⁿ
For 2% annual increases, year-five rent is starting rent multiplied by 1.02 to the fourth power when the first increase occurs in year two.
Simplified commission
Commission = Applicable Lease Revenue × Agreed Rate
Read the commission agreement for included rent, rate changes by year, representation splits, renewal treatment, free-rent adjustments, and payment timing.
Clear answers
Frequently asked questions
Straightforward answers to the questions investors ask most often.
How do you calculate NNN lease rent?
Multiply the annual base rent per square foot by the leased area, then add annual tenant-paid property taxes, building insurance, and common-area or maintenance charges. Divide the annual total by 12 for an average monthly occupancy cost.
What expenses are included in a triple net lease?
NNN charges typically include property taxes, building insurance, and common-area or property maintenance in addition to base rent. The exact scope varies: roof, structure, capital replacements, administration fees, utilities, and management can be allocated differently, so the signed lease controls.
Are NNN expenses fixed?
Usually not. Taxes, insurance, repairs, snow removal, landscaping, utilities, and CAM can change annually. Reconciliations, estimates, caps, exclusions, gross-ups, and audit rights in the lease determine what is billed and when.
What is the difference between NNN and gross rent?
In a gross lease, the landlord generally pays operating expenses from the stated rent, subject to any expense-stop or base-year provisions. In an NNN lease, the tenant pays base rent plus allocated taxes, insurance, and maintenance charges. Compare all-in occupancy cost, not base rent alone.
How are commercial lease commissions calculated?
A common structure multiplies rent over the commission term by an agreed percentage, sometimes with different rates by year or separate listing and tenant-representation shares. Commissions vary by market and agreement and may be affected by renewals, options, free rent, and expense treatment.
Analyze net lease income from both sides
Compare active NNN listings, then review the signed lease and expense history to understand the income stream behind the advertised cap rate.