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Commercial Net Lease Calculator

Net lease shifts expenses to tenant; pricing varies single net (N), double net (NN), triple net (NNN).

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Annual total rent (tenant)

$445,000

Total $/sf

$45

Pass-through expenses

$145,000

How the math works

Total $/sf = base + structure-dependent pass-through.

10k × ($30 + $5 + $1.5 + $8) NNN = $445,000 annual = $44.50/sf.

How to Use

  1. Enter tenant sq ft.
  2. Enter base rent $/sf.
  3. Enter taxes $/sf.
  4. Enter insurance $/sf.
  5. Enter cam $/sf.
  6. Enter lease structure.
  7. Read annual total rent (tenant).

Frequently Asked Questions

Net lease structures?

Gross: tenant pays only base rent; landlord all expenses. Single Net (N): tenant pays property tax. Double Net (NN): tenant pays tax + insurance. Triple Net (NNN): tenant pays tax + insurance + CAM. Absolute Net: tenant pays everything including roof + structure. Common rates: gross $35–60/sf office, NNN $25–45/sf + $8–15 in pass-throughs. Tenant prefers known total cost (gross). Landlord prefers expense flexibility (NNN). Large credit tenant typical: NNN with low TI.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.

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