NNN Lease Calculator
Monthly Rent = SF × (Base Rate + CAM + Tax + Insurance) ÷ 12
Why the quoted rate is not the rent
In a triple-net lease the tenant pays base rent plus a proportionate share of common area maintenance, property taxes and insurance. A space quoted at $18.00/SF NNN does not cost $18.00/SF.
This calculator builds the all-in figure so you can compare a NNN quote against a gross quote honestly.
Worked example
6,500 SF at $18.00/SF base, with CAM $4.20, tax $1.90 and insurance $0.65:
- NNN load: $6.75/SF/year
- All-in rate: $24.75/SF/year — 37.5% above the quoted base
- Total monthly rent: $13,406.25
A gross lease quoted at $24.00/SF is cheaper than this “$18.00” space. That comparison is the entire point.
What tenants should ask before signing
- Are the NNN figures actual or estimated? Estimates get reconciled, and you pay the difference.
- Is there a CAM cap? Uncapped CAM is an open-ended obligation. Caps on controllable expenses are negotiable.
- What is in CAM? Management fees, administrative loads and capital items appearing in CAM are common and frequently negotiable.
- How is the pro-rata share computed? On leased area or total area? The difference matters in a partly vacant centre.
Landlords: the same arithmetic drives recoveries in the NOI calculation.