In this article, you'll learn:
 

• How to calculate effective rent by averaging base rent and increases.
• The impact of additional rent, including CAMs and management fees.
• How to factor in concessions like free rent and allowances into your cost analysis.

The first part of an occupancy cost analysis is figuring out exactly how much your space actually costs you to occupy. There are more factors that go into your space than just your base rent. Looking at your effective rent, which includes your base rent with escalations, the cost of CAMs and additional rent, and any benefit you earn from concessions, gives you a fuller picture of your actual occupancy cost. In fact, when you look at effective rents, you'll find that sometimes the $22 per square foot space is less expensive than the $21 PSF space.