Owner & tenant tool — lease economics
Commercial lease & NNN rent calculator.
Convert quoted rent per square foot into monthly and annual occupancy cost. Model net/base rent, TMI or additional rent, term length and base-rent-free months without hiding the math.
How this model treats free rent
Free-rent months reduce base rent only. TMI/additional rent remains payable in the model for every month. Actual lease wording controls, so change the assumptions to match the proposal you are reviewing.
Monthly occupancy before HST, utilities & tenant-specific costs
$7,500
Monthly base rent
$4,500
Monthly TMI / additional
$3,000
Annual occupancy
$90,000
Effective average after 3 free base months
$7,275/mo
Estimated term occupancy cost
$436,500
Effective blended rent
$29.10/sf/yr
This is lease arithmetic, not a quote of market rent or legal interpretation of a lease. TMI definitions, gross-up clauses, utilities, percentage rent, management fees, taxes, insurance, capital recoveries and HST can differ by property and document.
Net / base rent
The quoted rent for the space itself, usually expressed annually per rentable square foot.
TMI / additional rent
A separate estimate or charge for items allocated under the lease, commonly including some combination of taxes, maintenance and insurance.
Effective rent
A way to spread modeled concessions such as free base rent across the full term. It is useful for comparing proposals, but it does not replace the actual payment schedule.