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Base Rent Escalation Calculation for Retailers

Posted by capital on January 23, 2018
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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 Amount Annual PSF Monthly Amount Monthly 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