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When leasing Austin retail space one of the most confusing things is trying to figure out how much your monthly rent will be. Landlord's tend to quote retail lease rates differently making it hard to compare apples to apples. Below are a few guidelines to help you calculate your monthly rent when renting retail space.

When leasing retail space in Austin landlords will typically quote a base rate, NNN (triple net), and maybe percentage rent. Base rate and NNN are usually quoted as SF / YR (e.g. $20 + $7NNN)

Base Rent (mimimum rent) - Landlords determine base rates based on a number of factors such as market conditions, investor preferences, available inventory, tenant credit, etc. Base rates are typically a negotiable item however the final number depends on your credit, length of lease term, tenant improvement allowance, and other concessions you ask for such as rent abatement. Austin Texas retail base rents range from $15 to $35 SF.

NNN (triple net) - Equals the operating expenses for the retail center such as taxes, insurance, and maintenance. Landlord will sometimes refer to this as CAM (common area maintenance). This number is variable and may go up or down depending on the costs for that year. NNN expenses are shared equally among all the tenants and is typically not a negotiable item unless you are a large, strong credit national franchise. Austin Texas retail NNN costs range from $5-$10 SF.

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