Commercial leasing
Effective Commercial Rent Calculator
Convert free rent, tenant allowances and commissions into effective rent. Enter your own assumptions and local rates.
Calculate your result
What this calculator estimates
Convert free rent, tenant allowances and commissions into effective rent. It combines the inputs below to produce Effective annual rent per area unit. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.
Worked example
Using the displayed sample assumptions, the calculator produces $20. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.
Inputs and assumptions
- Rentable area — sample input: 5000 sq. ft.
- Annual face rent per area unit — sample input: 28 currency units per sq. ft.
- Lease term — sample input: 7 years
- Free-rent months — sample input: 6 months
- Tenant improvement allowance — sample input: 150000 currency units
- Leasing commission — sample input: 50000 currency units
How to interpret the result
Compare full lease economics rather than face rent alone. Compare a conservative case with an expected case and keep a record of the assumptions used.
Common mistake to avoid
Do not omit incentives, recoveries, commissions or escalation. Local definitions, taxes, lending practices and measurement requirements can materially change the result.
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Reviewed 2026-09-08.