Commercial Rent Per Square Foot Calculator: Annual Rate From Total
Work out the rent per square foot per year on a commercial lease — the standard unit commercial brokers quote and the figure for comparing leases on equal terms.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Rent per square foot per year |
|---|---|
| $48k / 2,000 sq ft ($24/sf) | $24.00 |
| $180k / 4,000 sq ft (premium office) | $45.00 |
| $30k / 5,000 sq ft (warehouse) | $6.00 |
| $120k / 3,000 sq ft (Class A) | $40.00 |
How This Calculator Works
Enter total annual base rent and leasable square footage. The calculator divides one by the other to give the rent per square foot per year — the conventional commercial real estate metric. Add NNN operating expenses for an all-in cost-of-occupancy comparison.
The Formula
Cost per Unit
Total Amount is the full cost or price, Quantity is the number of units it covers
Worked Example
$48,000 of annual rent on 2,000 leased square feet works out to $24 per square foot per year. US 2024 medians: Class A office in major metros $35 to $90+ per sq ft; Class B office $20 to $45; suburban retail $15 to $40; industrial warehouse $6 to $15. Coastal metros (NYC, SF, LA) routinely 50% to 100% above national medians.
Key Insight
Commercial rent per square foot is misleading without the NNN context. A $20/sq ft 'gross' lease (landlord pays operating expenses) and a $14/sq ft 'NNN' lease ($6 in passthroughs) can have the same all-in cost. Always normalize to all-in occupancy cost ($/sq ft including NNN, plus tenant improvements amortized over the term, plus any concessions like free rent) before comparing leases.
Frequently Asked Questions
How is commercial rent per square foot calculated?
Divide total annual base rent by leasable square footage. $48,000 across 2,000 sq ft is $24 per sq ft per year.
What is NNN?
Triple net — the tenant pays base rent plus three categories of operating expenses: property taxes, insurance, and common area maintenance (CAM). NNN rates look lower than gross rates because operating expenses are billed separately.
What are typical rates?
US 2024 medians: Class A office in major metros $35 to $90/sq ft; Class B office $20 to $45; suburban retail $15 to $40; industrial warehouse $6 to $15. Coastal metros 50% to 100% above national medians.
Rentable vs usable area?
Usable area is the actual square footage of your space. Rentable area includes a share of common areas (lobbies, hallways) — typically 10% to 25% larger than usable. Commercial leases quote on rentable area; budget on usable area for actual space planning.
How do tenant improvements factor in?
Landlords often provide tenant improvement allowances ($20 to $100/sq ft) for build-out. Amortize that allowance against the lease term and subtract from the effective rent for a true all-in cost — a $30/sq ft rate with $50/sq ft TI allowance over 10 years effectively costs $25/sq ft.
Related Calculators
Methodology & Review
Commercial rent per square foot is total annual base rent divided by leasable area. The figure is the conventional 'asking rate' commercial brokers quote. Operating expenses (NNN — taxes, insurance, common area maintenance) are separate from base rent and need to be added for an all-in cost-of-occupancy comparison.
Written by Ugo Candido · Last updated May 17, 2026.