Industrial Real Estate Tool · Free
Warehouse Lease Cost Calculator
The rate on the flyer is not what you'll pay. Enter base rent, NNN charges, escalations, free rent and TI to see the true all-in cost per square foot, your net effective rent and the present value of the whole commitment — and put two spaces head to head.
Enter what the landlord quoted. We’ll roll in escalations, NNN growth, free rent and your build-out to show what the space really costs.
Lease terms
Year-1 rate, as quoted.
Taxes + insurance + CAM. Ask for the last 12 months of actuals.
Base rent only — NNN is usually still due.
Office, racking, power, dock work. What you pay beyond the allowance is counted.
Used to put future rent in today's dollars.
Your lease · true all-in cost
$13.40/SF/yr
vs. $12.50 quoted (base + NNN, year 1) · $20,833/mo at full rate
Total occupancy cost
$1,339,784
5 yrs, incl. out-of-pocket build-out
Net effective base rent
$8.61/SF
base rent net of free rent + TI
Present value of cost
$1,106,341
$13.37/SF/yr level equivalent
Concessions
$147,500
$47,500 free rent + $100,000 TI
After escalations, NNN growth, and out-of-pocket build-out, the space costs $0.90/SF/yr more than the year-1 rate suggests.
| Year | Base $/SF | NNN $/SF | Base paid | NNN paid | Total |
|---|---|---|---|---|---|
| 1 | $9.50 | $3.00 | $142,500 | $60,000 | $202,500 |
| 2 | $9.79 | $3.09 | $195,700 | $61,800 | $257,500 |
| 3 | $10.08 | $3.18 | $201,571 | $63,654 | $265,225 |
| 4 | $10.38 | $3.28 | $207,618 | $65,564 | $273,182 |
| 5 | $10.69 | $3.38 | $213,847 | $67,531 | $281,377 |
| Term total | $961,236 | $318,548 | $1,279,784 | ||
Negotiating a warehouse lease?
Email yourself these numbers. As a tenant rep, Ryan checks the rate, NNN estimate, escalations and concessions against what landlords are actually giving right now — and can show you comparable buildings.
Submitting does not create a brokerage relationship. MaxLife Realty LLC · Ryan Solberg, FL Broker License #BK3354351.
How to read a warehouse lease quote
An industrial lease quote has at least four moving parts: base rent that steps up every year, NNN charges (taxes, insurance, CAM) that change on their own schedule, concessions like free rent and a TI allowance, and the build-out you pay to make the space work. The headline rate captures only the first.
This calculator runs the lease month by month, applies free rent to base rent only, and totals everything you’ll pay. It reports the average all-in cost per SF, the landlord-style net effective base rent, and the present value at your cost of capital so a low-rate lease with heavy escalations can be compared fairly against a higher-rate lease with big concessions. If you’re weighing whether to keep renting at all, run the industrial lease vs. buy analysis; to size the space first, use the warehouse space calculator.
Warehouse lease FAQs
What does NNN mean on a warehouse lease?
NNN (triple net) means that on top of base rent the tenant pays its share of property taxes, building insurance and common-area maintenance. Those charges are quoted in $/SF/yr and reset every year — they're not fixed like base rent. Ask the landlord for the last 12 months of actual NNN charges and the current budget, because in Florida insurance and tax reassessment after a sale can move them materially.
What is the difference between net effective rent and true all-in cost?
Net effective rent is a landlord metric: total base rent over the term, minus free rent and the TI allowance, averaged per SF per year. True all-in cost is the tenant's number: it adds NNN charges and any build-out you pay beyond the allowance. A lease can have an attractive net effective rent and still cost more all-in because of higher NNN or steeper escalations.
How much do annual escalations really matter?
More than the headline rate on longer terms. On a $9.00/SF starting rent over ten years, 3% annual bumps add up to about $103/SF in base rent while 4% bumps add up to about $108/SF — a difference of roughly $5/SF over the term, on top of any difference in starting rate. That's why the calculator shows the full schedule instead of just year one.
Does free rent cover NNN charges too?
Usually not. Free rent (abatement) almost always applies to base rent only, and the tenant still pays NNN during the free period. Confirm this in the letter of intent. The calculator follows that convention.
Should I negotiate the rate, or the concessions?
It depends on your cost of capital and how long you'll stay. Free rent and TI are worth more to a cash-constrained tenant; a lower rate and smaller bumps are worth more over a long term. The present-value figure puts both on the same footing using your own cost of capital — a useful tiebreaker between two quotes. A tenant representative can also negotiate items this calculator doesn't price, such as renewal options, termination rights and expansion space.
Disclaimer: This calculator is for educational and informational purposes only and is not legal, tax or financial advice. Actual lease costs depend on the executed lease, including how NNN charges are calculated, caps and exclusions, and any additional rent. Have an attorney review any lease before you sign.
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