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. Ice cream shops plan with that whole cost at 8% to 10% of sales.
What does a triple net lease cost an ice cream shop each month?
Add the base rent and the triple net charges to see what the lease costs an ice cream shop each month, and the sales it needs at 8% to 10% 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
- $60,000 to $75,000 A month, at a healthy 8% to 10% share for a café or bakery
Where the money goes
- Base rent
- $4,500
- CAM
- $750
- Property taxes
- $600
- Insurance
- $150
Monthly sales needed at each share
$85,714$85.7K7%outside
$75,000$75K8%healthy
$66,667$66.7K9%healthy
$60,000$60K10%healthy
$54,545$54.5K11%outside
Blue columns are the healthy 8% to 10% band for a café or bakery.
The ice cream shop check reads public records at an address: who lives and works nearby, the ice cream shops already there and the traffic on its road. Check an address for an ice cream shop.
How the math works
Monthly cost = (base rent + CAM + taxes + insurance, per sq ft a year) × square feet ÷ 12
- Healthy occupancy share for ice cream shops
- Rent plus CAM, property taxes and insurance at 8% to 10% of sales, the same band DoorWorthy reports use for ice cream shops. 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.