Frequently Asked Questions

CAM stands for Common Area Maintenance — the shared costs of keeping the building and grounds functional, such as landscaping, parking-lot repair and lighting, snow removal, common-area cleaning, and shared utilities in hallways or lobbies. In a triple net lease, CAM is typically bundled with real estate taxes and building insurance and billed to tenants on a pro-rata basis, meaning your share is based on the percentage of the building's total square footage that your suite occupies. Ask for an itemized CAM statement, not just a lump-sum estimate, so you can see what's actually included before you sign.

Neither is inherently cheaper. A quoted NNN base rate is almost always lower than a quoted gross rate for a comparable space, because the NNN rate excludes operating expenses that the gross rate already bundles in. The only fair comparison is total occupancy cost per square foot per year — base rent plus CAM/taxes/insurance for an NNN lease, versus the all-in gross rate. Run both scenarios through a calculator like this one before assuming either structure is the better deal.

No. Every calculation runs locally in your browser using JavaScript — the numbers you enter are never transmitted to a server, logged, or stored. You can close the tab and nothing about your inputs persists anywhere. This also means results aren't automatically saved between visits, so note down or screenshot a scenario if you want to compare it later.

Commercial listings almost always quote a rate per square foot per year (e.g., "$28/SF/year"), even though tenants usually think in terms of what they'll pay per month. Some listings, especially for smaller retail or flex spaces, quote a flat monthly rate instead. Before entering a number into any calculator, confirm with the listing agent whether the figure you were given is annual or monthly — using the wrong assumption produces an estimate that's off by a factor of 12.

Usable square footage is the space you physically occupy inside your suite's walls. Rentable square footage adds a proportional share of the building's common areas — lobbies, shared restrooms, elevator banks, and corridors — using a "load factor" or "common area factor" that the landlord calculates. Most commercial rents are quoted per rentable square foot, so a space that looks cheap per square foot in a building with a high load factor may actually cost more per usable square foot than a comparably priced space in a building with a lower load factor.

Yes, in a simple way. You can enter a yearly percentage increase and a lease term, and the calculator applies that increase to base rent only, holding operating expenses and other costs flat. Year 1 is shown as the monthly and annual figure, and the term total is shown separately. Many leases use a fixed percentage or an index-linked adjustment, and expenses can also rise, so ask for the full rent schedule before signing a multi-year lease.

Landlords typically estimate CAM charges at the start of the year and bill tenants monthly based on that estimate. At year-end, they compare the estimate to actual operating expenses and "reconcile" the difference. If actual costs came in higher than estimated, tenants usually owe a one-time true-up payment; if costs came in lower, tenants may receive a credit. This is normal practice, but it means your real annual cost can differ from the estimate you were quoted at signing — budget some cushion for it.

This calculator and the guides on this site are educational tools meant to help you understand the math and vocabulary before you negotiate — they are not a substitute for professional representation. For any lease of meaningful size or term length, a commercial real estate attorney should review the actual lease document, and many tenants also benefit from a tenant-representation broker who can advise on market rates and negotiate on their behalf (ask how any broker is compensated).

Yes. The same base-rent-plus-CAM math applies whether you're evaluating a brand-new space or comparing a renewal offer to your current lease. One thing to watch for at renewal: landlords sometimes quote a "flat" renewal rate that's actually a modest increase over your expiring rate rather than current market rate — it's worth comparing your renewal quote to what comparable spaces are currently listing for before assuming it's a good deal.

Under an NNN lease the tenant pays base rent plus property taxes, insurance, and common area maintenance, as legal references such as the Cornell Law School Legal Information Institute describe it. Under a gross lease the landlord pays those expenses and the tenant pays a single all-inclusive rent. A modified gross lease sits between the two and has no single standard definition, so only the lease text tells you who pays what.

It is a label for a lease that splits expenses between landlord and tenant in a way the two parties negotiate. One modified gross lease might leave the tenant paying only utilities and janitorial; another might add a capped share of CAM. In the calculator, choose modified gross and type in the extra amount you expect to pay per square foot. If you are unsure, ask the agent for a written list of what the tenant pays.

No. We do not publish or estimate market rents. The numbers in the form are placeholders. For local rates, ask a licensed commercial broker, look at current listings for comparable space, and compare several quotes.

Multiply the monthly rate per square foot by 12. A quote of $2.50 per square foot per month is $30.00 per square foot per year. In this calculator you can leave the number as quoted and choose "per month" in the period selector, and the conversion is done for you.

It is a clause, usually in a gross or modified gross lease, where the landlord covers operating expenses up to a set level (often the amount in the first year) and the tenant pays increases above it. It means a gross lease can start to behave like an NNN lease as costs rise. Ask how the base is set and which expenses count.

No, it is not legal advice, and no. Leases vary by property, landlord, and jurisdiction, and the signed document controls. Use this site to learn the vocabulary and the arithmetic, then have a qualified attorney review the actual lease.

Under an NNN lease the tenant pays base rent plus property taxes, insurance, and common area maintenance, as legal references such as the Cornell Law School Legal Information Institute describe it. Under a gross lease the landlord pays those expenses and the tenant pays a single all-inclusive rent. A modified gross lease sits between the two and has no single standard definition, so only the lease text tells you who pays what.

It is a label for a lease that splits expenses between landlord and tenant in a way the two parties negotiate. One modified gross lease might leave the tenant paying only utilities and janitorial; another might add a capped share of CAM. In the calculator, choose modified gross and type in the extra amount you expect to pay per square foot. If you are unsure, ask the agent for a written list of what the tenant pays.

No. We do not publish or estimate market rents. The numbers in the form are placeholders. For local rates, ask a licensed commercial broker, look at current listings for comparable space, and compare several quotes.

Multiply the monthly rate per square foot by 12. A quote of $2.50 per square foot per month is $30.00 per square foot per year. In this calculator you can leave the number as quoted and choose "per month" in the period selector, and the conversion is done for you.

It is a clause, usually in a gross or modified gross lease, where the landlord covers operating expenses up to a set level (often the amount in the first year) and the tenant pays increases above it. It means a gross lease can start to behave like an NNN lease as costs rise. Ask how the base is set and which expenses count.

No, it is not legal advice, and no. Leases vary by property, landlord, and jurisdiction, and the signed document controls. Use this site to learn the vocabulary and the arithmetic, then have a qualified attorney review the actual lease.

Under an NNN lease the tenant pays base rent plus property taxes, insurance, and common area maintenance, as legal references such as the Cornell Law School Legal Information Institute describe it. Under a gross lease the landlord pays those expenses and the tenant pays a single all-inclusive rent. A modified gross lease sits between the two and has no single standard definition, so only the lease text tells you who pays what.

It is a label for a lease that splits expenses between landlord and tenant in a way the two parties negotiate. One modified gross lease might leave the tenant paying only utilities and janitorial; another might add a capped share of CAM. In the calculator, choose modified gross and type in the extra amount you expect to pay per square foot. If you are unsure, ask the agent for a written list of what the tenant pays.

No. We do not publish or estimate market rents. The numbers in the form are placeholders. For local rates, ask a licensed commercial broker, look at current listings for comparable space, and compare several quotes.

Multiply the monthly rate per square foot by 12. A quote of $2.50 per square foot per month is $30.00 per square foot per year. In this calculator you can leave the number as quoted and choose "per month" in the period selector, and the conversion is done for you.

It is a clause, usually in a gross or modified gross lease, where the landlord covers operating expenses up to a set level (often the amount in the first year) and the tenant pays increases above it. It means a gross lease can start to behave like an NNN lease as costs rise. Ask how the base is set and which expenses count.

No, it is not legal advice, and no. Leases vary by property, landlord, and jurisdiction, and the signed document controls. Use this site to learn the vocabulary and the arithmetic, then have a qualified attorney review the actual lease.

Under an NNN lease the tenant pays base rent plus property taxes, insurance, and common area maintenance, as legal references such as the Cornell Law School Legal Information Institute describe it. Under a gross lease the landlord pays those expenses and the tenant pays a single all-inclusive rent. A modified gross lease sits between the two and has no single standard definition, so only the lease text tells you who pays what.

It is a label for a lease that splits expenses between landlord and tenant in a way the two parties negotiate. One modified gross lease might leave the tenant paying only utilities and janitorial; another might add a capped share of CAM. In the calculator, choose modified gross and type in the extra amount you expect to pay per square foot. If you are unsure, ask the agent for a written list of what the tenant pays.

No. We do not publish or estimate market rents. The numbers in the form are placeholders. For local rates, ask a licensed commercial broker, look at current listings for comparable space, and compare several quotes.

Multiply the monthly rate per square foot by 12. A quote of $2.50 per square foot per month is $30.00 per square foot per year. In this calculator you can leave the number as quoted and choose "per month" in the period selector, and the conversion is done for you.

It is a clause, usually in a gross or modified gross lease, where the landlord covers operating expenses up to a set level (often the amount in the first year) and the tenant pays increases above it. It means a gross lease can start to behave like an NNN lease as costs rise. Ask how the base is set and which expenses count.

No, it is not legal advice, and no. Leases vary by property, landlord, and jurisdiction, and the signed document controls. Use this site to learn the vocabulary and the arithmetic, then have a qualified attorney review the actual lease.