The total or gross rent amount for a
lease term. Given wide divergences of lease
arrangements, the aggregate rent can be made
up of several components. Typically, in
commercial office leasing, the aggregate
represents the sum of the base rent and
additional rent. In a retail complex, the
aggregate or total rent may consist of the
base rent (often referred to as the minimum
rent ), additional rent (often referred to
in a commercial lease as The Tenant’s
Proportionate Share of Landlord’s Costs),
and a percentage rent involving gross sales
in excess of a stated dollar volume for each
rental year.
Example of Aggregate Rent
A commercial office tenancy has a
rentable area of 1,520 square feet and a
base monthly rent of $380 based on an annual
rate of $3.00 per square foot for the
rentable area. The total building rentable
area is 155,102 square feet. Consequently,
the tenant’s proportionate share is:
1,520 ÷ 155,102 = .0098
or 0.98%
Assuming estimated total
operating expenses and taxes for the year
are $1,368,000. Tenant’s annual
proportionate share would be:
$1,368,000 x .0098 =
$13,406.40 or $8.82 p.s.f.
If the expenses and
property taxes were equally distributed
throughout the year, the monthly additional
rent is:
$13,406.40 ÷ 12 =
$1,117.20
The aggregate or gross
rent (assuming no further adjustments were
required concerning additional rent
following year end), would be based on
$11.82 per square foot ($3.00 + $8.82). The
yearly aggregate is therefore $17,966.40
($11.82 X 1,520).
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