Free NNN Lease Calculator

Calculate the total occupancy cost for a triple net (NNN) commercial lease by adding base rent to estimated pass-through charges for taxes, insurance, and common area maintenance.

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Monthly Total Occupancy Cost

$8,625.00

Annual Total (Year 1)$103,500
All-In Cost Per Sq Ft$34.50
Annual NNN Charges$37,500
Monthly Base Rent$5,500.00
Total Base Rent Over Lease$350,403

Monthly Total Occupancy Cost vs Lease Term (years)

Understanding NNN (Triple Net) Leases

In a triple net lease, the tenant pays base rent plus their proportionate share of property taxes, insurance, and common area maintenance (CAM). This is the most common lease structure in commercial real estate.

Components

  • Base Rent: The fundamental lease payment, typically quoted per square foot per year
  • CAM (Common Area Maintenance): Landscaping, parking lot maintenance, common area utilities, cleaning, security
  • Property Tax: Tenant's proportionate share of the property tax bill
  • Insurance: Tenant's share of the building insurance premium
  • NNN vs. Gross Lease

  • NNN: Tenant pays base + all operating expenses separately (landlord risk is lower)
  • Modified Gross: Tenant pays base rent with some expenses included
  • Full Gross: One all-inclusive payment (landlord bears expense risk)
  • Escalation Clauses

    Most NNN leases include annual base rent escalations of 2-4% to keep pace with inflation. NNN charges adjust based on actual costs each year.

    Example Calculation

    3,000 sq ft office at $22/sq ft base rent, $6.50 CAM, $4.25 tax, $1.75 insurance, 5-year term with 3% annual escalation.

    1. 01Annual base rent: 3,000 x $22 = $66,000
    2. 02Annual CAM: 3,000 x $6.50 = $19,500
    3. 03Annual tax: 3,000 x $4.25 = $12,750
    4. 04Annual insurance: 3,000 x $1.75 = $5,250
    5. 05Total NNN charges: $19,500 + $12,750 + $5,250 = $37,500
    6. 06Year 1 total: $66,000 + $37,500 = $103,500
    7. 07Monthly total: $103,500 / 12 = $8,625
    8. 08All-in per sq ft: $22 + $6.50 + $4.25 + $1.75 = $34.50

    Frequently Asked Questions

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