Lease Versus Buy Calculator (Commercial Property)
Lease Versus Buy Calculator (Commercial Property): a planned Super Calculator tool. Stub page: the tool, its formula and a worked example are not published yet.
Lease Versus Buy Calculator (Commercial Property) is a planned calculator in the real estate section of Super Calculator, covering rent versus buy.
What this calculator will compute
Inputs: square footage, lease rate (currency per sq ft), escalation (%), lease structure (gross, modified gross, triple net), purchase price (currency), loan terms, operating expenses (currency), tax rate (%), discount rate (%) and horizon (years).
Outputs: net present value per path (currency), annual equivalent cost (currency) and break-even horizon (years).
Formula, recorded as scope and not yet verified against a primary source: Net present value of leasing (base rent escalating, operating expense pass-throughs under a net lease structure, tenant improvement allowance) against owning (debt service, operating expenses, depreciation tax shield, and terminal value net of disposition costs), both after tax and discounted at the firm’s cost of capital.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.