Commercial real estate has a quoting convention that surprises every first-time partner: the advertised number is usually just base rent, quoted per square foot per year. The taxes, insurance, and maintenance on the building get passed to you on top of it, and utilities on top of that. None of this is a scam, it's the standard structure, and it works fine once you understand it. But if you compare listings by their headline numbers, you are comparing apples to invoices.
01Decode the quote in ten seconds
“$10/SF NNN” on a 1,500 SF bay means: $10 × 1,500 ÷ 12 = $1,250/month base, plus NNN. Those three Ns are the “triple net”, property taxes, building insurance, and common area maintenance (CAM: plowing, lighting, paving, management). NNN charges are quoted the same way, so “$3.80/SF NNN charges” adds another $475/month. A “modified gross” or “gross” lease rolls some or all of that into one number, which is why a $14/SF gross quote can be cheaper than a $10/SF NNN quote. The label matters more than the number.
02The five lines of true monthly cost
| Line | What it is | What to ask |
|---|---|---|
| Base Rent | The advertised $/SF/year ÷ 12 | “Is that NNN, modified gross, or gross?” |
| NNN / CAM | Your share of taxes, insurance, maintenance | “What were actual NNN charges last year, per SF? Is there a cap on annual CAM increases?” |
| Utilities | Power, water, gas, internet, metered or allocated | “Separately metered? What does a similar partner pay in January?” |
| Required Insurance | Your liability policy, naming the landlord | “What coverage limits does the lease require?” ($30 to 60/mo is typical for a small shop) |
| One-Times & Escalators | Deposit, first/last, annual increases (often 3%/yr) | “Total move-in check? What's rent in year three?” |
03Interrogate any listing in five questions
Ask it exactly that way. A landlord who can answer in one breath runs a tight building. One who can't, or won't, is telling you something about the next three years of surprises.
Estimates are marketing; reconciled actuals are accounting. If CAM jumped 30% last year, you want to know why before it's your 30%.
Most small-bay leases run 1 to 3 years with ~3% annual escalators. Fine, but compound it before you sign, and ask what renewal looks like.
Many small-business leases ask you to personally back the lease. Some landlords will negotiate a “good guy” clause or a guarantee that burns off over time. You can't negotiate what you don't ask about.
Use clauses, hours, power limits, compressor noise, customer visits, signage. The cheapest bay in town is expensive if your business isn't allowed to operate in it. Pair this with our fit-out-by-trade guide before you tour.
“If you can't get the all-in number on one page, that is also an answer.”
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Request received.04Where we stand on this
We quote One United Price: one all-in monthly price for the bay, base rent and recurring property charges together. Prices are on request: ask the Welcome Team through the bay’s facility page and you get One United Price in writing before you sign. Ask for the building’s utility history in writing too. Not because we're saints, but because partners who budget correctly stay, and partners blindsided by CAM reconciliations don't. Transparent math is a retention strategy. You should demand it from whoever you rent from, us included.
