Tenant Sales Rent Ratio Calculator

Occupancy cost ratio signals tenant health. This calculator reports it.

Annual sales

Annual base rent

CAM + tax + ins annual

Percentage rent annual

Occupancy cost ratio

9.73%

Base rent ratio

7.92%

Total occupancy cost

$467,000

How the math works

OCR = (base + recoveries + % rent) / sales. Compare to industry benchmark.

A 10% OCR on apparel is middling, 14% is elevated, 16%+ signals risk. Push for sales data annually in leases — landlord portfolios without visibility to tenant sales are flying blind on renewal leverage and distress early warning.

How to Use

Enter annual sales.
Enter annual base rent.
Enter CAM + tax + ins annual.
Enter percentage rent annual.
Read occupancy cost ratio.

Frequently Asked Questions

Healthy ratios?

Restaurants: 6-10% of sales. Apparel: 10-14%. Grocery: 1.5-3%. Fast food: 8-12%. Fitness: 12-18%. Specialty retail: 10-16%. Above these ranges signals tenant distress or below-market sales performance.

Why landlord tracks?

Early warning on struggling tenants. Renewal pricing (can't push rent if already at ceiling). Co-tenancy trigger assessment. Percentage rent forecasting. Portfolio risk management.

Tenant perspective?

Occupancy cost creep = margin compression. Target staying within industry band. If climbing, options: push sales (difficult), negotiate down, relocate, close. Tenants hitting 16%+ in apparel are at elevated close risk within 18 months.