Published September 16, 2021

Base Rent Escalation Calculation for Retailers

Written by Robert Tack

Base Rent Escalation Calculation for Retailers header image.

It is common for landlords to increase the base rent on retailers 3% annually. To understand how this would impact the rent over time, it’s important to complete the lease calculations in the entirety. The below retailer occupies 2,600 square feet and pays $30.92 per square foot in the base year and is charged 3% escalations thereafter on a 10 year lease.

Annual AmountAnnual PSFMonthly AmountMonthly PSF
$80,400.00 $               30.92 $           6,700.00 $                 2.58
$82,812.00 $               31.85 $           6,901.00 $                 2.65
$85,296.36 $               32.81 $           7,108.03 $                 2.73
$87,855.25 $               33.79 $           7,321.27 $                 2.82
$90,490.91 $               34.80 $           7,540.91 $                 2.90
$93,205.64 $               35.85 $           7,767.14 $                 2.99
$96,001.80 $               36.92 $           8,000.15 $                 3.08
$98,881.86 $               38.03 $           8,240.15 $                 3.17
$101,848.31 $               39.17 $           8,487.36 $                 3.26
$104,903.76 $               40.34 $           8,741.98 $                 3.36

 

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