How the Math Works
Commercial rent is quoted as a rate per square foot. To get a monthly number, multiply the rate by the size of the space.
- Base rent per month is square feet times the monthly rate. 2,585 SF at $1.15 is $2,972.75.
- NNN charges per month are square feet times the NNN rate.
- Total monthly cost is the two added together.
Monthly or Annual? Read the Quote Carefully
In California, landlords usually quote rent per square foot per month. In many other markets the same number means per year. "$1.15 PSF" in Palm Desert is $1.15 per square foot every month, which is $13.80 per square foot per year. Mixing the two up changes the answer by a factor of twelve, so confirm which one a listing uses.
What NNN Charges Cover
NNN stands for triple net. On top of base rent, the tenant pays a share of three things:
- Property taxes on the building and land.
- Insurance the owner carries on the building.
- Common area maintenance, often called CAM: parking lot, landscaping, exterior lighting, and other shared costs.
NNN charges are usually billed monthly as an estimate and trued up against actual costs once a year. Every lease defines them a little differently, so read that section closely.
Questions to Ask Before You Sign
- What is the current NNN estimate per square foot, and what was it last year?
- Exactly which costs are included, and is there a cap on yearly increases?
- How and when are estimates reconciled against actual costs?
- Who maintains and replaces the HVAC, the roof, and the parking lot?
- How much does base rent go up each year?
- Which utilities are separately metered, and which are shared?
We have a 2,585 SF creative office and showroom space available at 42650 Melanie Place in Palm Desert for $1.15 PSF per month, NNN. See the space or ask us for the current NNN estimate.
Midbar Investment