01 / Rate Basis
Normalize the area and time period.
Commercial rent is often quoted per square foot per year, but proposals can use monthly amounts or different area definitions. Confirm the rentable area and convert every option to a common annual and monthly basis.
02 / Recoveries
Read what additional rent includes.
Additional rent can include property taxes, insurance, common-area maintenance, management, utilities and other lease-defined costs. Use the current estimate, then review prior reconciliations, exclusions, administration charges and the tenant's proportionate share.
03 / Inducements
Separate first-year relief from stabilized cost.
A rent-free period changes early cash flow but does not necessarily reduce future occupancy cost. This calculator applies the selected free period to base rent only and shows stabilized annual cost separately. Tenant improvement allowances and other incentives should be analyzed under their actual conditions.
04 / Tax & Limits
A comparison model, not a lease abstract.
The Canada Revenue Agency generally treats rentals of commercial real property as taxable supplies, subject to the facts and statutory exceptions. Enter the applicable rate for the transaction or use zero to exclude tax from the comparison.
This tool does not interpret a lease, calculate percentage rent, escalation schedules, present value, restoration cost or accounting treatment. Obtain legal, tax and commercial advice before committing to premises.