How to Calculate Office Lease Cost

What is Office Lease Cost?

Commercial office leases are typically quoted as GBP/sqft/year. Total occupancy cost includes base rent, business rates, service charge, and fit-out cost amortised over the lease term.

Formula

Annual base rent = sqft x rent per sqft/year

Step-by-Step Guide

1Annual base rent = sqft x rent per sqft/year
2Business rates in England: rateable value x 51.2p (2024 UBR)
3Service charge: typically 5-15 GBP/sqft/year for managed buildings

Worked Examples

Input

2,000 sqft, 30 GBP/sqft/year, 3-year lease, 50K GBP fit-out

Result

Year 1: 110,000 GBP; Years 2-3: 60,000 GBP/year; 3-year total: 230,000 GBP

Frequently Asked Questions

What is Office Lease Calc?

Commercial office leases are typically quoted as GBP/sqft/year. Total occupancy cost includes base rent, business rates, service charge, and fit-out cost amortised over the lease term

How accurate is the Office Lease Calc calculator?

The calculator uses the standard published formula for office lease calc. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Office Lease Calc calculator use?

This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Office Lease Calc calculator use?

The core formula is: Annual base rent = sqft x rent per sqft/year. Each step in the calculation is shown so you can verify the result manually.

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