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Leasing Commission Per Square Foot Calculator
LC $/SF lets you compare deals across different sizes. This calculator converts total commission to a per-square-foot basis for quick benchmark.
LC per SF (total)
$5.00
LC per SF per year
$1.00
LC per year
$10,000
How the math works
LC $/SF enables apples-to-apples comparison between deals. A $50k commission on a 10,000 SF lease = $5/SF; on 5,000 SF = $10/SF. Same dollars, different costs.
Annualized LC ($/SF/year) is useful for DCF modeling — it shows the annual cost drag against gross rent. Institutional underwriters track this closely.
How to Use
- Enter total leasing commission.
- Enter square footage leased.
- Enter lease term in years.
- Read $/SF total and $/SF/year.
Frequently Asked Questions
What's typical LC $/SF?
Office: $2-$8/SF total for 5-year leases. Retail: $3-$10/SF for 10-year. Industrial: $1-$4/SF for 5-10 year. Double for new deals vs renewals; concessions-heavy markets push higher.
When is it too high?
If LC exceeds 10-15% of total lease value (rent × term), you're overpaying brokers. Reset rates or go direct-to-tenant for the next round.
How do renewals compare?
Renewal LC typically 50-60% of new-deal LC. Broker does less work (no tour, no pitch). Smart LLs negotiate a flat renewal rate schedule with their exclusive agent upfront.
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