TENANTS · FREE TOOL
True Occupancy Cost
What that quoted rate actually costs you — after load factor, NNN, free rent and escalations.
Everybody negotiates the base rate. Almost nobody knows what they're actually going to pay. Load factor, NNN estimates and escalations routinely put the real number 25–40% above the rate on the flyer. This shows you the honest one.
Your numbers
Pre-filled with realistic DFW-market estimates. Change anything — results update as you type.
Texas brokers quote both ways — office annually, industrial and retail often monthly.
Not included in the quoted rate on NNN and absolute net deals.
Every input is saved in the link — text it to a partner and they'll see the exact same scenario.
EFFECTIVE RATE PER SF
$32.56/SF/yr
vs. $26.00/SF quoted
Total obligation over term
$976,846
First-year cash outlay
$59,000
Average monthly cost
$16,281
Cost per usable SF
$37.45/SF/yr
Usable SF
5,217 SF
Total base rent
$789,225
Total NNN / CAM
$302,621
TI allowance credit
-$150,000
Free rent value
$39,000
NPV of lease stream
$892,934
8% discount rate
Cost per employee / yr
$8,140
Term
60 months
Your effective rate is 25% above the quoted rate. That gap is the whole negotiation.
| Year | Base rent | NNN / CAM | Total | Per month |
|---|---|---|---|---|
| Year 1 | $117,000 | $57,000 | $174,000 | $14,500 |
| Year 2 | $160,680 | $58,710 | $219,390 | $18,283 |
| Year 3 | $165,500 | $60,471 | $225,972 | $18,831 |
| Year 4 | $170,465 | $62,285 | $232,751 | $19,396 |
| Year 5 | $175,579 | $64,154 | $239,733 | $19,978 |
Want this as a clean one-page PDF you can send to your lender?
Branded, dated, every input and output laid out. Downloads instantly and lands in your inbox so it's easy to forward.
Questions people ask
What is load factor and why does it matter?
Load factor is the common-area add-on between the space you can actually use and the space you pay for. A 15% load factor means 10,000 rentable SF is about 8,700 usable SF — and your real cost per usable foot is 15% higher than quoted.
Are NNN charges included in the quoted rate?
No. On a triple net lease, taxes, insurance and common area maintenance are billed on top of base rent. In DFW those run roughly $5–$14 per SF per year depending on product type and submarket.
What is effective rent?
The average annual cost per SF over the whole term after free rent, escalations, TI allowance and operating expenses. It's the only number that lets you compare two deals honestly.
Numbers are a starting point.
Thirty years in DFW and Austin means I know which of these assumptions the market will actually support. Send me your scenario and I'll tell you straight.
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