NYC Commercial Lease Cost Calculator
Estimate the total cost of your NYC commercial lease including base rent, operating expenses (NNN), utilities, and the NYC Commercial Rent Tax (CRT) where applicable.
Formulas Used
Annual Base Rent (Year N):
Base RentN = (Base Rent/sq ft) × (Sq Ft) × (1 + Escalation Rate)N−1
Annual Operating Expenses:
OpEx = (NNN Rate/sq ft) × (Sq Ft) — constant each year unless renegotiated
Annual Utilities:
Utilities = Monthly Utilities × 12
NYC Commercial Rent Tax (CRT):
— Applies only to Manhattan tenants below 96th St with annual base rent ≥ $250,000
— Full rate: CRT = Annual Base Rent × 3.9%
— Phase-in credit (rents $250,000–$300,000): CRT = Full CRT × [(Annual Rent − $250,000) / $50,000]
— Source: NYC Admin Code § 11-701; NYC Dept of Finance
Annual Total Cost (Year N):
TotalN = Base RentN + OpEx + Utilities + CRTN
Total Lease Cost:
Total = Σ Annual TotalN for N = 1 to Lease Term
Net Cost After TIA:
Net Cost = Total Lease Cost − Tenant Improvement Allowance
Effective Cost per Sq Ft per Year:
= Net Cost / (Sq Ft × Lease Term)
Assumptions & References
- NYC Commercial Rent Tax rate of 3.9% applies to Manhattan tenants (below 96th St) with annual base rent ≥ $250,000. A phase-in tax credit reduces liability for rents between $250,000 and $300,000. Source: NYC Admin Code § 11-701 et seq.; NYC Dept of Finance CRT filing requirements.