How to Work Out Your Real Monthly Occupancy Cost
To work out your real monthly occupancy cost, add base rent, CAM and NNN, utilities, insurance and other charges.
At Reach Commercial Real Estate, we represent tenants. We help you find locations, compare costs, investigate property questions and negotiate the lease. You bring your business plans. We help you evaluate where those plans fit.
This guide covers the cost lines to add up, how we compare them and what the Florida Department of Revenue says about sales tax on commercial rent.
1. Start with base rent and the quoted square footage
A listing gives us a starting point. We ask for the information needed to evaluate the property.
For each candidate, we request:
Asking rent and quoted square footage.
CAM or NNN estimates and other lease charges.
Annual rent increases.
We write down what the flyer left out.
2. Add the CAM and NNN charges
CAM means common area maintenance. NNN generally refers to property tax, insurance and maintenance charges. We ask what the proposed lease includes rather than rely on the label.
Gross rent includes most building costs. NNN, or triple net, rent adds your share of property taxes, insurance and common area maintenance on top of base rent.
A gross quote and an NNN quote are not a fair fight until you add the NNN charges back.
3. Add the rest of your real monthly occupancy cost
Your occupancy review should include:
Base rent.
CAM and other additional charges.
Scheduled increases.
Utilities.
Repairs and maintenance assigned to you.
Construction and equipment installation.
Deposits.
Rent due before opening.
We compare offers on total occupancy cost: base rent, CAM, taxes, insurance, escalations, buildout and the months of rent you'll pay while contractors are still on site.
4. Compare the total per year
We line up offers on total occupancy cost per year. Always compare total cost per year, never base rent alone.
We also compare what the landlord offers against what your contractor expects the space to need.
The comparison should show what you pay to get open and what you pay to stay open.
5. Take the state sales tax off the list
Florida Department of Revenue Tax Information Publication 25A01-04, issued July 24, 2025, says the state sales tax on rent or license fees for the use of real property (commercial rentals) under section 212.031, Florida Statutes, is repealed effective October 1, 2025. The repeal is in Chapter 2025-208, Laws of Florida.
If your rental or occupancy period begins on or after October 1, 2025, no state sales tax or discretionary sales surtax applies to your rent. The publication says the repeal applies to both the state sales tax and any associated discretionary sales surtax.
Extra items to check
Business tax receipt. Melbourne requires a $25 nonrefundable application fee at the time of initial application, applied toward the first year's business tax.
Review fees. In unincorporated Brevard County, the Commercial New Construction application lists a $210.00 flat Zoning Review fee and a $175.00 Concurrency Review.
Impact fees. In unincorporated Brevard County, impact fees are due prior to pre-power or final inspection, whichever occurs first.
Insurance requirements. Keep track of them with your possession dates and rent commencement.
Start your search with Reach
You do not need to find the property before calling us. Helping you find and evaluate the property is part of our work.
Bring your requirements, budget, preferred area and target opening date. For each candidate, we request asking rent and quoted square footage, CAM or NNN estimates and other lease charges, and annual rent increases. We will use those details to build your search, compare locations and negotiate the lease. In most deals the landlord pays our fee.
Already found a space? Send me the address and listing. We will start with the property questions and deal terms you need to investigate.
Cassandra Hartford, Reach Commercial Real Estate, 321-514-0876, cassandra@reachcommercialre.com, 909 E New Haven Ave #300, Melbourne, FL 32901.
Related: the leasing guide and the guide to operating expense charges.
Frequently Asked Questions
Is rent for periods before October 1, 2025 still taxed?
The publication lists rent or license fee payments for rental or occupancy periods through September 2025 as excluded from the repeal, even if payment is made on or after October 1, 2025. It adds that delayed payment of rent for taxable rental periods does not avoid tax.
Does the repeal cover a salon that rents floor space to independent stylists?
Question 15 in the publication's Q&A covers this case. It says rent or license fees for occupancy periods beginning on or after October 1, 2025, are not subject to sales tax or discretionary sales surtax.
Is rent for a parking space covered by the repeal?
The publication lists parking or storage spaces for motor vehicles in parking lots or garages as still taxable under s. 212.03.
Sources
Written by Cassandra Hartford, founder and CEO of Reach Commercial Real Estate. She has worked in Brevard County commercial real estate for 17 years, representing buyers, sellers, landlords, and tenants across Florida's Space Coast.
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