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Special Assessment Pass Through Calculator

Assessments often pass through to tenants.

$
%
SF

Per-SF annual charge

$0.60

Annual total charge

$56,667

Tenant-billable portion

$48,167

How the math works

Annual = total / years. Tenant billable = annual × pass-through %. Per SF = billable / SF.

$850k / 15 = $56.7k/yr. × 85% = $48.2k billable. / 80k SF = $0.60/SF/yr — modest impact.

How to Use

  1. Enter total assessment.
  2. Enter term years.
  3. Enter pass-through %.
  4. Enter billable SF.
  5. Read per-SF annual charge.

Frequently Asked Questions

What's a special assessment?

One-time or multi-year levy for specific improvement (sewer, sidewalk, BID) benefiting properties in a defined area. Typically amortized over 10-20 years on tax bill. Commercial leases often allow pass-through to tenants as OpEx.

Pass-through mechanics?

NNN leases: typically 100% pass-through. Modified gross: partial. Full gross: landlord absorbs. Review lease definition of 'taxes' vs 'special assessments' — some leases exclude special assessments specifically to protect tenant.

Tenant pushback?

Large assessments (>$1/SF/yr) trigger tenant concern. Strategic landlord moves: amortize over longer period, absorb some portion, defer to end of lease term. Tenants with caps (CAM caps) may not pay full pass-through — landlord eats above-cap.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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