Work out a triple net rent by the month.
A listing says $30 a square foot NNN. What will the space actually cost each month? Enter the area, the rent and the NNN charges, and see the monthly and yearly cost for every year of the term.
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The NNN lease calculator
At $30.00 a square foot a year NNN, with $9.50 a square foot in NNN charges, 2,400 SF costs about $7,900 a month: $6,000.00 in base rent plus $1,900.00 in NNN charges.
The space and the rent
Base rent only
The NNN charges
Your best guess
What the space costs
At $30.00 a square foot a year NNN, with $9.50 a square foot in NNN charges, 2,400 SF costs about $7,900 a month: $6,000.00 in base rent plus $1,900.00 in NNN charges.
Each month, year one
$7,900.00
Year one
$94,800.00
All-in per SF a year
$39.50
$3.29 per SF a month
Over 5 years
$503,306.04
$382,257.72 base rent, $121,048.32 NNN
| Year | Base rent a month | NNN a month | Total a month | Total a year |
|---|---|---|---|---|
| 1 | $6,000.00 | $1,900.00 | $7,900.00 | $94,800.00 |
| 2 | $6,180.00 | $1,957.00 | $8,137.00 | $97,644.00 |
| 3 | $6,365.40 | $2,015.71 | $8,381.11 | $100,573.32 |
| 4 | $6,556.36 | $2,076.18 | $8,632.54 | $103,590.48 |
| 5 | $6,753.05 | $2,138.47 | $8,891.52 | $106,698.24 |
How the numbers are worked out.
The formulas
- Monthly base rent
- area x rent per SF per year / 12 (or area x rent per SF per month)
- Monthly NNN
- area x NNN per SF per year / 12
- Year n
- year one's monthly amount x (1 + yearly increase) ^ (n - 1)
- Per month to per year
- rent per SF per month x 12 = rent per SF per year
What it assumes
- Rents quoted per square foot are per year unless you switch to per month.
- Each year's rent is the first year's grown by the yearly bump, rounded to the cent.
- Free rent covers base rent only; NNN charges are still due in those months.
- NNN charges are estimates. The actual amounts are settled in the year-end reconciliation.
Worked example: 2,400 SF at $30.00 NNN
2,400 SF at $30.00 a square foot a year, with $9.50 a square foot in NNN charges: base rent $6,000.00 plus NNN $1,900.00 is $7,900.00 a month, $94,800.00 a year.
| Year | Base rent a month | NNN a month | Total a month | Total a year |
|---|---|---|---|---|
| 1 | $6,000.00 | $1,900.00 | $7,900.00 | $94,800.00 |
| 2 | $6,180.00 | $1,957.00 | $8,137.00 | $97,644.00 |
| 3 | $6,365.40 | $2,015.71 | $8,381.11 | $100,573.32 |
| 4 | $6,556.36 | $2,076.18 | $8,632.54 | $103,590.48 |
| 5 | $6,753.05 | $2,138.47 | $8,891.52 | $106,698.24 |
Base rent rises 3% a year; the NNN charges are assumed to rise 3% too.
With 3% yearly bumps, year two's base rent is $6,180.00 a month.
A quote of $2.50 a square foot a month is the same rent: $2.50 x 12 = $30.00 a year.
General information to help you check the math, not legal, tax or accounting advice. Your lease controls: where it says something different, follow the lease.
Edge cases and common mistakes.
Edge cases
Rentable vs usable area
Office rents are often quoted on rentable area, which adds a share of the lobby and halls (the load factor). Use the area the lease charges on.
Quotes per month
Some listings quote per square foot per month. Switch the quote to per month; the yearly figure is twelve times it.
Admin fees
Some NNN estimates leave out the landlord's admin fee on CAM. Split the NNN charges and add the fee to see it.
Anchors that pay their own costs
In a center with an anchor outside the CAM pool, your share of the pool can be larger than your share of the center.
Estimates vs actuals
Monthly NNN charges are estimates. After the year the landlord reconciles them, and the difference is billed or credited.
Common mistakes
Reading NNN rent as the whole rent
$30 NNN means $30 of base rent plus your share of taxes, insurance and common area costs on top.
Mixing monthly and yearly quotes
$2.50 a month and $30 a year are the same rent. Comparing $2.50 with another listing's $28 makes the first look lower than it is.
Forgetting the NNN growth
Taxes, insurance and CAM rise too. A five-year cost that holds NNN flat understates what you'll pay.
Questions
What does $20 a square foot NNN mean?
The base rent is $20 a square foot a year, and the tenant also pays its share of the property's taxes, insurance and common area costs. On 2,000 SF that is $40,000 a year of base rent, $3,333.33 a month, plus the NNN charges.
How do you calculate NNN rent per month?
Multiply the area by the rent per square foot per year and divide by 12, then do the same with the NNN charges per square foot and add the two.
Is NNN rent quoted per month or per year?
Usually per square foot per year, but some listings quote per month. Multiply a monthly quote by 12 to compare.
Does NNN include CAM?
Yes. The three nets are real estate taxes, insurance and maintenance, which includes common area maintenance (CAM). The lease defines what's in each.
How much do NNN charges add?
It depends on the property: its taxes, insurance and upkeep. Ask the landlord for last year's actual NNN costs per square foot and this year's estimate.
Cornerhold does this from your leases and invoices.
Cornerhold bills each tenant's base rent and monthly estimates from the lease, reconciles the estimates at year end, and on Firm and up shows tenants their charges and statements in the tenant portal. Owner and Owner Plus start with 14 days free, and you can set up your portfolio in about ten minutes.
The buildings, businesses, people and figures in the examples on this page are made up.