Commercial Rent Increase Calculator

Commercial Rent Increase Calculator is a tool to estimate the cost of renting a commercial space in the future. The commercial rent increase calculator is calculated based on the current rent, annual increase, and the number of years.

Commercial properties usually have different types of rent agreements than residential properties. Usually, the tenants and the landlord enter a longer lease agreement and lock in the rent for annual increases. The commercial rent will be repositioned upon renewal.

Why does commercial rent increase?

There are many reasons why commercial rent increases, inflation, and demand play the largest roles in deciding how much the rent will increase.

• Demand - If more people move into the neighborhood and the area is prospering, the demand for these commercial properties will be high which would cause rent increases.
• Inflation - As the costs of maintaining the property go up, so does the rent of the commercial property. Since landlords need to spend money maintaining and upgrading the property, they will pass some of those costs to the tenants to recoup their investments.

Commercial rent increase is a common part of lease agreements, make sure you factor in rent increases to your business budget if you are planning to open a business in a commercial property.