Commercial properties can offer great returns if rent is calculated thoughtfully using methods like rent per square foot or percentage leases. Rent per square foot sets a certain amount per square foot of leased space and is beneficial when multiple renters share a building, while percentage leases have tenants pay a percentage of retail income in addition to base rent. Property owners should understand ownership costs and target rent amounts needed to achieve positive cash flow.

1. Commercial properties act as good investment options
as they offer great returns provided the rent is
calculated thoughtfully.
John Reider Properties
455 E. Central Texas Expwy,
Suite 101,
Harker Heights, TX 76548
www.johnreider.com
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Phone:�(254)�699 -�8300
How To
Calculate Rent
On A
Commercial
Property?
Methods to calculate rent on commercial property are:
Rent Per Square Foot
In this method, the rent
is set at a certain
amount per square foot
of the leased space.
These types of
calculations are
beneficial when several
renters are sharing a
single building. Rent per square foot can
be expressed either as
an annual or a monthlyamount.
Percentage Leases
In this, the tenant
pays a percentage of
his retail gross
income in addition
to the base rent.
Percentage leases arecalculated by twomethods that arePercentage Over Base
Amount and Percentage
of Gross Receipts.
Conclusion
The property owner should know
his costs of ownership and what he
needs to receive by�the way of rent
to assure a positive cash flow.