Real Estate
Commercial Sublease Profit Calculator
Estimate sublease revenue, operating income, monthly cash profit, contribution per occupied unit, and break-even occupancy.
Occupied or used units per month-
Gross monthly revenue-
Variable monthly cost-
Booking or platform fees-
Operating income before debt and reserve-
Monthly cash profit after debt and reserve-
Annualized cash profit-
Contribution per occupied unit-
Occupied units required for cash break-even-
Break-even utilization or occupancy-
Cash profit margin-
Decision view
Commercial sublease area and obligation stack
Commercial sublease area and obligation stackSubleased and vacant inventory are layered above master-lease cost and tail exposure.
Exact scenario comparisonExpected utilization or occupancy (%) changes while all other entered assumptions remain constant.
| Expected utilization or occupancy (%) | Occupied or used units per month | Gross monthly revenue | Variable monthly cost | Booking or platform fees | Operating income before debt and reserve | Monthly cash profit after debt and reserve | Annualized cash profit | Contribution per occupied unit | Occupied units required for cash break-even | Break-even utilization or occupancy | Cash profit margin |
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How to use Commercial Sublease Profit Calculator
- Use legally subleasable area or days under the master lease.
- Reconcile base rent, operating expense, utilities, and tenant improvements.
- Check consent, use, term, and restoration clauses.
Calculator guide
Understanding Commercial Sublease Profit Calculator
Commercial sublease profit depends on leasable inventory, occupied use, sublease rate, pass-through costs, brokerage, master rent, debt, and reserve.
Calculation method
How the calculation works
Translate available commercial sublease inventory and occupancy into used units, gross revenue, variable cost, platform fees, operating income, cash profit, break-even occupancy, reserve funding, and margin. Apply occupancy to leasable units, deduct variable and platform-like fees, then cover master-lease and other fixed obligations.
Lease stack
Layer subtenant income over the master obligation
The visual separates subleased area, vacant area, subrent, pass-throughs, master rent, and tail exposure.
Worked situations
Practical examples
- A profitable monthly spread may not recover brokerage and build-out.
- A sublease ending before the master lease creates tail exposure.
- Operating-expense pass-throughs can reset independently of subrent.
Better inputs
Useful tips
- Model free rent and commissions over the actual term.
- Separate rentable area from usable area.
- Maintain a scenario for vacancy after sublease expiry.
Before relying on the result
Limitations and common mistakes
- Lease timing, escalation, concessions, commissions, improvements, and restoration are simplified.
- One occupancy and sublease rate are used.
- Legal consent and accounting treatment require professional review.
Reference
Key terms
- Master lease
- Primary lease obligation retained by the sublessor.
- Sublease spread
- Subrent less allocated master-lease and operating burden.
- Tail exposure
- Master-lease cost remaining after the sublease ends.
Important note
Calculated from the entered property and financing assumptions. It does not replace lender, appraisal, legal, tax, or investment review.
Frequently asked questions
Does profit include brokerage and build-out?
Only if represented in the entered cost assumptions.
Should free rent reduce the rate?
Use an effective rate over the analyzed term.
Does this confirm sublease rights?
No.