Commercial Lease Basics -Rent, Quotes & CAM, oh my!

August 13, 2021

denver commercial property

-Rent, Quotes & CAM, oh my!

 

 

1. Rent is quoted in two ways: a flat rate or a percentage rate.
A flat rate is the price per square foot. A percentage rate is a base amount plus a prearranged percentage of your monthly receipts.

2. Rent can be quoted on a monthly basis ($x.00) or a yearly basis ($xx.00).
Both are the same price, but are expressed in different ways.

 

 

 

 

 

Quotes on a monthly basis: SQ * monthly price ($x.00)
3000 sq ft * $2.50 = $7,500 per month

Quotes on a yearly basis: SQ * yearly price ($xx.00)
(3000 sq ft * $30.00) = $90,000 per year
divide this by 12 and that will be your price per month

 

 

 

 

 

 

3. Be sure to understand the details surrounding CAM (Common Area Maintenance), NNN (Triple Net), and other fees that may or not be included in the quote given to you.

 

For instance, you may get a quote for $20 a square foot, but after CAM or other fees are included it can jump up to $27, so make sure to take that into account when you’re speaking to your commercial agent.