Free Retail Rent Per Square Foot Calculator
Analyze retail lease costs on a per-square-foot basis and calculate the sales volume needed to support the rent at a target occupancy cost ratio.
USD
sq ft
USD
%
USD
Base Rent Per Sq Ft
$33.60
Total Occupancy Cost Per Sq Ft$40.80
Actual Occupancy Cost Ratio12.8%
Sales Needed for Target Ratio$1,020,000
Sales Per Sq Ft$320
Monthly Total Occupancy Cost$8,500
Base Rent Per Sq Ft vs Annual Base Rent
Retail Rent Analysis
For retail tenants, the critical question is whether the rent is supportable by the expected sales volume. The occupancy cost ratio is the key metric.
Occupancy Cost Ratio
Occupancy Cost Ratio = Total Occupancy Cost / Annual Sales x 100
Total occupancy cost includes base rent, NNN charges, percentage rent (if applicable), and sometimes merchant association dues.
Target Ratios by Retail Type
Sales Per Square Foot
This metric allows comparison across different-sized spaces:
Example Calculation
$84,000 annual rent for 2,500 sq ft, $18,000 NNN charges, targeting 10% occupancy cost, with $800,000 projected sales.
- 01Base rent per sq ft: $84,000 / 2,500 = $33.60
- 02Total occupancy cost: $84,000 + $18,000 = $102,000
- 03Occupancy cost per sq ft: $102,000 / 2,500 = $40.80
- 04Actual occupancy ratio: $102,000 / $800,000 = 12.8%
- 05Sales needed for 10% target: $102,000 / 10% = $1,020,000
- 06Sales per sq ft: $800,000 / 2,500 = $320