Per Square Foot Gross on a Commercial Lease

What does per square foot gross mean on a commercial lease? Per month? Per year?

1 Answer

This usually is an annual amount. A multi-year lease will usually have a schedule of annual increases built in, so the tenant will have no surprises.(A five year lease will have five prices.)

In residential structures, stairways and hallways are typically deducted from the square feet of living space calculation. (This is usually a local law.) The use of 'Gross' in commercial leases indicates that the price is calculated using the perimeter dimensions of the space. However you choose to divide the space with walls, closets or other build-outs, you still pay for the total square footage of the area.