Byline Ohio Commercial Rental Lease Made Easy

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today I'm gonna teach you everything you need to know to calculate commercial rent and since every lease is different meaning all rents are calculated differently we're going to cover the difference between useful and writable square footage the differently structures and their impact on rent calculations and be sure to stick around to the end where I'll give you a link to use a calculator that I put together so that you can calculate your rent payments commercial real estate much like many other industries is ramp it with its own unique lingo words like triple net and cap rate or thrown around as if they're common knowledge but if you're not a commercial real estate you likely won't be able to keep up with the various terms and calculating commercial rent can be just the same when a commercial real estate broker or a property owner tells you that their property is $32 per foot triple net what does that actually mean wouldn't it be easier if it was just given on a total monthly amount instead of a per square foot basis well yes and now commercial rents are calculated on a price per square foot basis because more often than not spaces may be divided or combined these numbers give industry professionals a quick snapshot to compare rent prices among various properties after all five thousand dollars per month doesn't tell you how big the space is or what else may be included in the base rent here's the math behind calculating your rent by square footage in Nashville where I'm based and throughout most of the country commercial rents are quoted on an annual basis however in other parts of the country like California they may quote rents on a monthly basis so it's important to know how rent is calculated in your area before diving into these calculations let's take our previous example of $32 per square foot which is your annual rental rate if your commercial space is 3,000 square feet here's how to calculate your rap price per square foot times total square feet equals total annual rent so you multiply the price per square foot by the total square footage and that will give you your annual rent for example thirty two dollars per square foot times 3000 square feet equals 96 thousand dollars per year divide that by twelve for your total monthly rental rate of eight thousand dollars well it may now seem easier to calculate your monthly rental rate it can actually get far more complicated let's discuss usable versus rentable square footage depending on the amount of tenants and common area in the property you may be quoted on a usable square-footage usf or writable square-footage RSF basis usable square footage is the amount of space that you alone can occupy and utilize while writable square footage adds in any common areas that all tenants have access to and must therefore maintain writable square footage is calculated...