Rules
Commercial rent per square foot by US market: what to verify before you sign
Break down quoted commercial rent per square foot by property type and US market, then test broker benchmarks against your own deal math before signing.
What to take away
- Quoted rent per square foot is a starting number, not a final cost. Ask for the lease type, measurement standard, and expense pass-throughs.
- Office, industrial, and retail rents move on different clocks. Compare like property type, submarket, and building class.
- Test any broker or consultant benchmark against CoStar, CompStak, and local comps before you sign.
- The full process from first estimate to final walk-through includes CAM reconciliation and renewal dates, so map it in workspace property leasing from first estimate.
Quoted rent per square foot by property type
Office rent per square foot usually appears as an annual rate. Industrial rent often quotes on a triple net basis. Retail rent can be base plus percentage rent. Each structure changes the effective cost.
Lease Structures Compared
Gross
- Taxes
- Landlord
- Insurance
- Landlord
- Maintenance
- Landlord
- CAM
- Included
- Face Rate
- Higher
Net
- Taxes
- Tenant
- Insurance
- Tenant
- Maintenance
- Tenant
- CAM
- Separate
- Face Rate
- Lower
Triple Net
- Taxes
- Tenant
- Insurance
- Tenant
- Maintenance
- Tenant
- CAM
- Added
- Face Rate
- Lowest
Verify the lease type before comparing numbers. A net lease shifts property taxes, insurance, and maintenance to the tenant. A gross lease keeps those costs with the landlord, so the face rate hides them.
Market benchmarks across US cities
Use a table to separate property types and markets.
US Market Watch by Property Type
Office
- Manhattan
- Class A leads
- Chicago
- Loop vs Fulton
- Austin
- New supply
- Atlanta
- Midtown, Buckhead
Industrial
- Manhattan
- Last-mile premiums
- Chicago
- O'Hare, I-55
- Austin
- SH 130 demand
- Atlanta
- Airport, I-20
Retail
- Manhattan
- Fifth Avenue tier
- Chicago
- Michigan Ave vs hood
- Austin
- Domain vs SoCo
- Atlanta
- Lenox, Alpharetta
| Market | Office watch | Industrial watch | Retail watch |
|---|---|---|---|
| Manhattan | Class A face rates lead the US | Last-mile premiums apply | Fifth Avenue sets a separate tier |
| Chicago | Loop vs. Fulton Market split | O'Hare and I-55 corridors | Michigan Avenue vs. neighborhood |
| Austin | New supply affects concessions | Demand near SH 130 | Domain vs. South Congress |
| Atlanta | Midtown and Buckhead | Airport and I-20 corridors | Lenox and Alpharetta |
The table below adds clearly labelled illustrative asking ranges. They are not quotes. Use them only to compare markets, then verify current numbers with CoStar, CompStak, CBRE, JLL, Cushman & Wakefield, Colliers, or Savills.
| Market | Illustrative Class A office asking rent (USD per sq ft per year) | Illustrative industrial NNN asking rent (USD per sq ft per year) | Illustrative prime retail asking rent (USD per sq ft per year) |
|---|---|---|---|
| Manhattan | 70 to 120 | 20 to 35 | 500 to 1,500 |
| Chicago | 35 to 55 | 8 to 14 | 120 to 300 |
| Austin | 40 to 65 | 9 to 15 | 30 to 60 |
| Atlanta | 35 to 55 | 7 to 12 | 40 to 90 |
These ranges are illustrative typical asking ranges, not effective rents. Floor, term, concessions, and building class can move them. Confirm with the named providers before you sign.
Pull current data from CoStar, CompStak, CBRE, JLL, Cushman & Wakefield, Colliers, or Savills. Tenant reps often share comps. Match building class, floor, and term. Do not mix quoted rates with effective rates. Effective rent subtracts free rent and TI amortization. That is the number your CFO should approve.
How lease structure changes the number
A gross lease bundles operating expenses into one rate. A net lease separates them. A triple net lease adds taxes, insurance, and CAM. The quoted rate may be lower, but your total cost can climb.
Ask for a full expense history. Compare the last three years of CAM reconciliation. Look for caps on controllable expenses. Without a cap, a single tax reassessment can change your budget.
Example: testing a broker's figure on a 3,000 sq ft office
- Write down the quoted rate and lease type. Ask if the rate is gross, net, or modified net.
- Pull three comps from CompStak, CoStar, or county records. Match building class, floor, and lease term.
- Add operating expenses, parking, and tenant improvement amortization. Compare total occupancy cost.
- Check the escalator clause. Fixed or index-based bumps change year two and year three. An escalator clause can use a fixed percentage or an index.
- Stress test with free rent months and market downtime.
A quoted rate on a 3,000 square foot office is an annual figure. If the lease is triple net, add taxes, insurance, and CAM. The total occupancy cost can exceed the face rate by a wide margin.
Where brokers and consultants get their numbers
Brokers pull from CoStar, CompStak, Crexi, LoopNet, and internal deal files. Location consultants may use Placer.ai, Esri, STDB, or Buxton. Those tools estimate trade area and traffic. They do not set rent.
Ask for the source date and sample size. Ask whether the number is asking rent or effective rent. Asking rent is the list price. Effective rent is what tenants actually pay after concessions. The gap can be large.
What to verify before you sign
Use this checklist.
- Lease typegross, net, or modified net.
- Measurement standardBOMA, REBNY, or landlord's method.
- CAM cap and reconciliation rights.
- Escalator clausefixed, CPI, or market reset.
- Personal guarantee or good guy clause.
- Parking and occupancy rules under NFPA 101.
- Hidden costs per the ASTM commercial lease article.
Industrial and retail rent per square foot
Industrial rent per square foot often quotes on a triple net basis. Clear height, dock doors, and trailer parking drive the rate. Retail rent per square foot can include percentage rent. Sales thresholds and co-tenancy clauses matter.
A retail lease may require a personal guarantee. Review the guaranty language with counsel. Both property types need the same test as office: separate face rate from total occupancy cost.
