Calculator inputs
Use this model for engineering campuses, delivery centers, labs, or custom office buildouts.
Plotly graph
The graph uses your submitted inputs. It shows the built-in example before calculation.
Example data table
| Metric | Example Value |
|---|---|
| Land Cost | $500,000.00 |
| Hard Construction Cost | $3,200,000.00 |
| Soft Cost | $480,000.00 |
| Gross Development Cost | $4,639,800.00 |
| Net Funded Basis | $3,789,800.00 |
| Year 1 Annual Rent | $787,581.16 |
| Year 1 Monthly Rent | $65,631.76 |
| Annual Rent per Sqft | $31.50 |
| Total Lease Payments | $14,122,847.60 |
| NPV of Rent | $7,781,817.61 |
Formula used
Land Cost + Hard Cost + Soft Cost
Base Project Cost + Contingency Amount + Developer Fee Amount
Base Project Cost × Contingency %
Base Project Cost × Developer Fee %
Gross Development Cost − Tenant Contribution − Residual Value
r(1+r)n ÷ ((1+r)n − 1)
Net Funded Basis × Capital Recovery Factor
Annual Capital Recovery + Operating Expenses + Taxes + Insurance + Maintenance
Year 1 Annual Rent × (1 + Escalation Rate)Year − 1
Annual Rent ÷ Rentable Area
How to use this calculator
- Enter land, hard, and soft development costs.
- Add contingency and developer fee percentages.
- Enter tenant contribution and expected residual value.
- Set financing, discount, amortization, and lease term assumptions.
- Add annual operating expenses, taxes, insurance, and maintenance.
- Enter annual escalation and rentable area.
- Press Calculate Lease to show the results above the form.
- Review the schedule, graph, and exports for decision support.
Frequently asked questions
1. What does build-to-suit lease mean?
A custom property is designed around a tenant’s needs. The landlord funds most development costs, then recovers them through rent, expenses, and lease structure over the agreed term.
2. Which costs belong in the development budget?
Include land, hard construction, soft costs, contingencies, and developer fees. Tenant contributions reduce the funded basis. Residual value can offset the amount recovered through rent.
3. Why enter amortization and lease term separately?
Amortization controls capital recovery speed. Lease term controls contract duration. Keeping them separate helps test refinance risk, renewal scenarios, and rent recovery timing.
4. What does annual escalation do?
It increases future rent by a fixed percentage each year. This models inflation, cost growth, and negotiated step-ups common in long commercial leases.
5. Why is rent per square foot useful?
It normalizes cost across different building sizes. Teams can compare locations, layouts, and project scopes using one consistent occupancy metric.
6. Should taxes, insurance, and maintenance stay separate?
Yes. Separate entries improve transparency and sensitivity testing. They also help when one party pays certain items directly or expense reimbursements differ from base rent.
7. Can software development teams use this model?
Yes. It works for offices, labs, support centers, and hybrid campuses. Adjust area, cost, and escalation assumptions to match the facility plan.
8. Is this a legal lease opinion?
No. It is a planning model, not legal advice. Confirm rent mechanics, expense clauses, and accounting treatment with qualified advisors before signing.