In short
Commercial rent in the USA is usually quoted per square foot per year, and what it includes depends on the lease type: a gross lease covers the building's operating costs, while a triple net (NNN) lease adds your share of property taxes, insurance and common area maintenance on top. Compare spaces on their total cost, confirm with the city that zoning and the certificate of occupancy allow your business, agree the main terms in a letter of intent, and have the lease reviewed before you sign.
1. Work out what you need and your budget
- Space: the square footage, the layout, storefront and signage for retail, parking, loading, and the power and plumbing your business needs (a salon or restaurant needs much more than an office).
- Budget: the total monthly cost, not only the base rent: add NNN charges or utilities, the security deposit, the build-out (tenant improvements) and any broker or attorney fees.
- Term: how long you want to commit, and whether you want options to renew.
2. Understand the lease type and the real cost
| Lease type | What the rent covers | What you pay on top |
|---|---|---|
| Full-service gross | Base rent plus the building's operating costs | Usually your own utilities inside the space, depending on the lease |
| Modified gross | Base rent plus some costs, as negotiated | The costs agreed to be yours, often increases above a "base year" |
| Triple net (NNN) | Base rent only | Your share of property taxes, insurance and common area maintenance (CAM) |
NNN charges are estimated in advance and the CAM part is usually reconciled against the actual costs at the end of the year, so the bill can go up. Ask for the last year's actual charges, what CAM includes, and whether increases in controllable costs are capped. Use our commercial rent calculator to turn a rate per square foot per year, plus NNN charges, into a monthly cost.
3. Check zoning and the certificate of occupancy
Before you sign, confirm with the city or county planning office that the property's zoning allows your type of business, and check the certificate of occupancy (CO) for the space. A lease's permitted-use clause does not prove that zoning or the building's occupancy allows your use. Leases often make the tenant responsible for the permits and the CO for its use, especially after a build-out or a change of use, and in older buildings a change of use can trigger accessibility upgrades. Ask for the lease to be conditional on getting the permits you need.
4. Agree the main terms in a letter of intent
Many commercial deals start with a letter of intent (LOI) that sets out the main terms before the lease is drafted. It is usually non-binding, except for points such as confidentiality. Cover at least:
- The rent, the lease type, and how and when the rent increases
- The term, any options to renew and any early termination right
- The security deposit and whether the landlord wants a personal guarantee
- Free-rent months and a tenant improvement (TI) allowance for the build-out
- The permitted use, any exclusive-use protection, and signage
- Who maintains and repairs what, including the roof, HVAC and parking lot
- Your right to assign the lease or sublet if you sell or move the business
5. Review the lease before you sign
- Check that the lease matches the LOI, and read the CAM, repair and default clauses closely.
- A personal guarantee makes you personally liable if the business cannot pay; ask whether it can be limited in amount or time.
- Accessibility: under Title III of the Americans with Disabilities Act, both the landlord and the tenant of a public accommodation are responsible, and the lease can allocate the work. Agree who pays for any changes.
- Get the insurance the lease requires (often general liability, naming the landlord) before you take the keys.
6. Check state and local rules
Taxes, licensing and landlord-tenant rules for commercial space are set by states and cities. One recent change: Florida repealed its sales tax on commercial rent (the business rent tax) with effect from 1 October 2025, under House Bill 7031; the tax still applies to rent for periods up to 30 September 2025. Check your state's tax department and your city's business licensing office for the rules where you are.
Checklist
- Total monthly cost worked out, including NNN charges
- Zoning and certificate of occupancy confirmed for your use
- LOI agreed on rent, term, increases, deposit, guarantee, TI allowance and use
- Lease reviewed by an attorney, matching the LOI
- Repairs, CAM, accessibility and assignment clauses understood
- Insurance in place, permits and licences applied for
Questions people ask
What is a triple net (NNN) lease?
A lease where the tenant pays a base rent plus its share of the property taxes, the building insurance and common area maintenance (CAM). The base rent is lower than in a gross lease, but the extra costs can change, and CAM is usually reconciled against the actual costs once a year.
How is commercial rent calculated in the USA?
Usually as a rate per square foot per year. Multiply the rate by the square footage and divide by 12 for the monthly rent; under an NNN lease, add the NNN charges (also quoted per square foot per year) to compare spaces fairly.
Do I need to check zoning before signing a commercial lease?
Yes. Confirm with the city or county that the zoning allows your type of business and check the certificate of occupancy for the space. A permitted-use clause in the lease does not prove the use is allowed, and leases often make the tenant responsible for permits.
Is there sales tax on commercial rent in Florida?
Not any more. Florida repealed its business rent tax with effect from 1 October 2025 (House Bill 7031); tax still applies to rent for periods up to 30 September 2025.
Who is responsible for ADA accessibility in a rented store?
Under Title III of the Americans with Disabilities Act, both the landlord and the tenant of a public accommodation are responsible, and the lease can allocate the work between them. Settle who pays for any accessibility changes before you sign.
Sources
- Florida business rent tax repeal, HB 7031: Holland & Knight, 28 July 2025 and Florida Realtors, September 2025
- Zoning and certificates of occupancy before signing: for example, City of Lenexa, Kansas; rules are set by each city
- Lease types and CAM reconciliation: Holland & Knight, March 2026
- Accessibility duties of landlords and tenants: ADA.gov (ADA Title III)