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Blended Occupancy Cost Calculator

Tenants compare deals on all-in occupancy cost, not base rent. This calculator blends base + NNN + other charges into a single $/SF number so negotiations are apples-to-apples.

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Blended occupancy cost per SF

$42.00

NNN subtotal (CAM + tax + ins)

$12.00

NNN as % of base

42.86%

How the math works

Blended occupancy cost includes everything the tenant writes a check for monthly: base + CAM + tax + insurance + utilities + other. Only this number is comparable across lease structures.

A sophisticated tenant will ask 'show me your all-in,' not 'what's your base rent?' Lenders to retailers also stress-test blended OC as % of tenant sales.

How to Use

  1. Enter base rent PSF.
  2. Enter CAM, real-estate tax, and insurance reimbursements PSF.
  3. Enter other charges (utilities, HVAC) PSF.
  4. Read blended total occupancy cost PSF.

Frequently Asked Questions

Why is this important?

Base rent can be misleading. A $28 base with $14 NNN is $42 all-in; a $38 gross lease might be cheaper. Tenants making real decisions look at the all-in number.

Typical CAM + tax + insurance?

Retail strip center: $8-$18 PSF depending on tax/insurance jurisdiction. Office high-rise: $15-$30+ on top of base. Industrial: $2-$8 (usually NNN is low).

Does occupancy cost ratio matter?

Yes — retail tenants target 8-12% of sales as total occupancy cost. Restaurants: 6-10%. Office: not directly tied to revenue. If tenant OC ratio is too high, they underperform and churn.

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