Base rent plus CAM, property taxes and insurance, each usually quoted per square foot a year, multiplied by the square feet and divided by twelve. Daycares plan with that whole cost at 8% to 12% of sales.
What does a triple net lease cost a daycare each month?
Add the base rent and the triple net charges to see what the lease costs a daycare each month, and the sales it needs at 8% to 12% of sales.
Total monthly cost$6,000a month in rent and NNN charges
$72,000 a year, or $40.00 per sq ft a year all in. NNN charges are 25% of the total.
- Sales needed to carry it
- $50,000 to $75,000 A month, at a healthy 8% to 12% share for this kind of business
Where the money goes
- Base rent
- $4,500
- CAM
- $750
- Property taxes
- $600
- Insurance
- $150
Monthly sales needed at each share
$100,000$100K6%outside
$75,000$75K8%healthy
$60,000$60K10%healthy
$50,000$50K12%healthy
$42,857$42.9K14%outside
Blue columns are the healthy 8% to 12% band for this kind of business.
The daycare check reads public records at an address: who lives and works nearby, the daycares already there and the traffic on its road. Check an address for a daycare.
How the math works
Monthly cost = (base rent + CAM + taxes + insurance, per sq ft a year) × square feet ÷ 12
- Healthy occupancy share for daycares
- Rent plus CAM, property taxes and insurance at 8% to 12% of sales, the same band DoorWorthy reports use for daycares. Every type's band:
Healthy occupancy share by business type Business type Healthy share of sales Café or bakery 8% to 10% Restaurant or bar 6% to 10% Salon or personal services 10% to 15% Retail store 8% to 12% Fitness or wellness 10% to 15% Another concept 8% to 12% - Estimates, not fixed
- NNN charges are estimates the landlord reconciles, usually once a year, and they can rise.
- Not included
- Payroll, supplies, loan payments and build-out. This is a planning estimate for a lease conversation, not a sales or profit forecast.
DoorWorthy reports run this same calculation for a real address, next to the spending, competition and rules found there.