Lease Comparison Tool
Compare two commercial lease proposals side by side. Analyze rent, TI, free rent, escalations, and total occupancy cost. Free, instant, no login required.
Lease A
Lease B
How to Compare Commercial Lease Proposals
Comparing commercial leases requires looking beyond the headline rent. The total occupancy cost includes base rent, CAM charges, escalations over the full lease term, and any additional fees. Two leases with the same base rent can have vastly different total costs.
The most accurate comparison uses effective rent, which accounts for tenant improvement allowances, free rent periods, and escalation schedules. This normalizes different deal structures into a single per-square-foot metric that represents your true cost.
What is Effective Rent?
Effective rent is the net cost of a lease per square foot per year after accounting for all concessions. It is calculated by taking the total occupancy cost over the lease term, subtracting TI allowances and the value of free rent months, then dividing by total square feet and total years.
This metric is the gold standard for lease comparison because it normalizes different deal structures. A lease with higher base rent but generous TI and free rent may have a lower effective rent than a "cheaper" lease with no concessions.
Hidden Costs in Commercial Leases
Beyond base rent and NNN charges, commercial leases can include several hidden costs. These may include percentage rent (retail), after-hours HVAC charges, parking fees, signage restrictions that require costly alternatives, and excessive common area factor (loss factor) calculations.
Other frequently overlooked costs include relocation expenses, buildout costs exceeding the TI allowance, personal guarantees, and restrictive assignment or subletting clauses that reduce flexibility. Always review the full lease document with qualified counsel before committing.
Need a detailed LOI analysis?
CREagentic's LOI Redline Agent reviews every clause with a 79-item institutional checklist. Start free.