Triple Net Lease Cost Per Square Foot Calculator

Triple Net Lease Cost Per Square Foot Formula:

\[ \text{Cost per sq ft} = \frac{\text{Triple Net Lease Cost}}{\text{Area}} \]

Cost per sq ft:

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1. What is Triple Net Lease Cost Per Square Foot?

The Triple Net Lease Cost Per Square Foot is a commercial real estate metric that calculates the cost per square foot of space under a triple net lease agreement. This calculation helps tenants and landlords understand the true cost of occupying commercial space.

2. How Does the Calculator Work?

The calculator uses the simple formula:

\[ \text{Cost per sq ft} = \frac{\text{Triple Net Lease Cost}}{\text{Area}} \]

Where:

Triple Net Lease Cost — Total annual lease cost including base rent, property taxes, insurance, and maintenance (currency)
Area — Total square footage of the leased space (sq ft)

Explanation: This calculation provides the cost per square foot, which is essential for comparing different commercial properties and understanding the true occupancy cost.

3. Importance of Cost Per Square Foot Calculation

Details: Calculating cost per square foot is crucial for budgeting, comparing different property options, negotiating lease terms, and making informed commercial real estate decisions.

4. Using the Calculator

Tips: Enter the total triple net lease cost in your local currency and the total area in square feet. Both values must be positive numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is included in triple net lease cost?
A: Triple net lease cost typically includes base rent plus tenant's share of property taxes, building insurance, and common area maintenance costs.

Q2: Why calculate cost per square foot?
A: It allows for easy comparison between different properties and helps tenants understand the true cost of their space occupancy.

Q3: Is this calculation used for residential or commercial properties?
A: Primarily for commercial properties, as triple net leases are most common in commercial real estate.

Q4: How often should this calculation be done?
A: Typically during lease negotiations, when comparing properties, and annually to track occupancy costs.

Q5: Does this include utilities and other tenant-specific costs?
A: No, this calculation typically includes only the triple net costs. Utilities and other specific tenant expenses are usually separate.