Total Occupancy Cost Calculator
Add rent, service charge, property tax and insurance into a true annual occupancy cost, and see the real cost per square foot of a commercial lease.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Commercial space is marketed on rent per unit area, and rent is often barely half of what occupying the space costs. Service charge, property tax and insurance are separate, recurring and frequently larger than tenants expect when they compare two buildings on headline rent alone.
Comparing on total occupancy cost per unit area is the only way two buildings can be judged fairly, particularly when one is a modern building with a high service charge and the other is an older one with almost none.
What is included
Total occupancy cost = rent + service charge + property tax + insurance. Divide by the area to get a cost per square foot that can be compared directly between buildings.
Worked example
A 3,000 square foot unit at 60,000 rent looks like 20 per square foot. Add a 12,000 service charge, 15,000 of property tax and 3,000 of insurance and the true cost is 90,000 a year — 30 per square foot, half as much again. Rent is only 67% of what occupying the space costs.
Ask for the service charge history
Service charge budgets are estimates and are reconciled after the year end, sometimes with a substantial balancing charge. Ask for three years of actual figures rather than the current budget, and ask specifically what major works are anticipated during your term.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
What is usually left out of a rent quote?
Service charge, property tax or business rates, insurance, and often a separate charge for parking or after-hours air conditioning. Together these commonly add fifty percent or more to the rent on a modern building.
Can the service charge increase during my lease?
Yes, and it frequently does. It is a recovery of actual costs rather than a fixed sum, so major works, higher energy prices or a change in the building occupancy all feed through. Ask whether the lease caps increases.
Should I compare buildings on rent or total cost?
Total cost per unit area, always. A cheaper rent in an inefficient building with a high service charge and poor energy performance regularly costs more overall than a higher rent in a well-run one.