CRE Lease Analysis Tool - Tenant          
  Quickly compare the total cost to lease versus buy a CRE property.  
  Review the calculations and rent schedule on the other pages.  
                                         
  Settings:                                    
    Lease type              
   
    Rent increase            
     
                                           
  Lease inputs:              
   
    Rental rate ($/sf)   # months   Leased area (sf)    
     
Lease inputs - advanced:

For each row, enter the following:
- rental rate ($/sf) paid by the tenant
- number of months in the period
- area leased by the tenant in the period.
 
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
                                   
    Starting base rent             $/sf  
Starting base rent:

Enter the rental rate that will be paid by the tenant at the beginning of the lease.
 
   
      %  
Rent increase:

Enter the rent increase which is an adjustment made to the rental rate. In some cases, the lease has a built-in provision that allows for periodic rent adjustments.
 
   
      $/sf  
Rent increase:

Enter the rent increase which is an adjustment made to the rental rate. In some cases, the lease has a built-in provision that allows for periodic rent adjustments.
 
    Lease term (max 300 months)       mo      
    Leased area                 sf      
    Tenant improvements           $/sf  
Tenant improvements:

Enter the amount of tenant improvements (TIs) that the tenant is responsible for covering. TIs refer to any modifications, alterations, or improvements made to a property by a tenant to suit their specific needs.
 
    Start date (m/d/y) | |    
                                           
  Free rent:       # months   % month   Month of    
      free rent   in free rent   lease term    
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Free rent:

For each row, enter the following:
- number of months of free rent
- percentage of days in each month covered by the free rent period (default set to 100% of days per month).
- month in the lease term when the free rent period begins.
 
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    Components of free rent:          
  Base rent    
                         
  Rent increase    
                         
  Expense recoveries    
                         
  Parking costs    
                                           
  Expenses:       Property   Base year   Annual    
      ($/sf)   ($/sf)   % increase    
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Expenses (gross lease):

For each row, enter the following:
- name of expense or expense group
- property expense amount ($/sf) paid by the property owner
- base year amount ($/sf)
- annual percentage increase for the expense or expense group
 
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  Expenses:       Property   Tenant   Annual    
      ($/sf)   ($/sf)   % increase    
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Expenses (net lease):

For each row, enter the following:
- name of expense or expense group
- expense amount ($/sf) paid by the property owner
- expense amount ($/sf) paid by the tenant
- annual percentage increase for the expense or expense group
 
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  Parking costs:                    
   
  Type of stall   # stalls   Mthly rate ($/stall)    
       
Parking costs:

For each row, enter the following:
- the type of stall (e.g., executive)
- the number of parking stalls
- monthly rate ($/stall)
 
           
           
           
           
             
                                         
  Evaluate buying a property:          
   
    Purchase price               $  
Purchase price:

Enter the total cost to purchase the property. Include all closing costs such as legal fees, taxes, due diligence costs, etc.
 
    Tenant improvements           $  
Tenant improvements:

Enter the amount of tenant improvements (TIs) that the owner-user will invest into the property after purchase. TIs refer to any modifications, alterations, or improvements made to a property by an owner-user to suit their specific needs.
 
    Resale value                 $  
Resale value:

Enter the total value that the owner-user expects to realize upon sale of the property. The tool assumes that the owner-user sells the property at the end of the lease term entered above in the Lease Inputs section.
 
    Annual expenses:     $ total   % increase    
      Operating costs      
Operating costs:

Enter the annual amount of costs that the owner-user will spend to operate the property and the annual growth rate. Property operating costs could include utilities, cleaning, repairs & maintenance, taxes, insurance, etc.
 
      Capital reserve      
Capital reserve:

Enter the annual amount of capital expenditures that the owner-user will spend to maintain the condition of the property and the annual growth rate.
 
                                           
  Other inputs:                    
   
    Tenant name                      
    Suite number                      
    Floor number                      
  Building name / address                  
                                         
                                         
                                         
                                         
                                         
                                         
                                         
                                         
              Lease Buy              
Total cost to lease = total rent during the lease term + rent increases - free rent - + expense reimbursements - tenant improvements Total Cost
   
Total cost to buy = total operating expenses + purchase price + tenant improvements + capital reserve - resale value Total Cost
Base Rent     Purchase Price
Free Rent     Expenses
Reimbursements     TIs
Parking Costs     Capital Reserve
TIs     Resale Value
                                               
                                   
  Calculations    
 
  Year Start date End date Area LEASE BUY  
          Base rent Free rent Reimburs. Parking TIs Total Cost Purch. Price Expenses TIs Capex Resale Total Cost  
         
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
  Year Start date End date Area LEASE BUY  
          Base rent Free rent Reimburs. Parking TIs Total Cost Purch. Price Expenses TIs Capex Resale Total Cost  
         
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
                     
  Rent Schedule - Lease Option
  Period Start Date End Date Lease Term Free Rent Area Base Rent
        mos mos sf $/sf/yr $/sf/mo $/period $/mo