1. What is Commercial Rent Calculation?

Commercial rent in the Philippines is typically calculated by multiplying the area of the space by the rental rate per unit area (either per square meter or square foot). This gives the monthly rental amount for commercial properties.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Area \) — Size of the commercial space (in sqm or sqft)
• \( Rate \) — Rental rate per unit area (PHP per sqm or sqft)

Explanation: The calculation is straightforward - multiply the area by the rate to get the monthly rent amount in Philippine Pesos.

3. Importance of Rent Calculation

Details: Accurate rent calculation helps both landlords and tenants understand the fair market value of commercial spaces, budget appropriately, and negotiate lease terms effectively.

4. Using the Calculator

Tips: Enter the area of the commercial space, select the unit (square meters or square feet), and input the rental rate per unit. The calculator will compute the monthly rent amount.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between sqm and sqft calculations?
A: 1 square meter = 10.764 square feet. Make sure your rate matches the unit you select (PHP/sqm or PHP/sqft).

Q2: Are there additional charges beyond the base rent?
A: Yes, commercial leases often include VAT (12%), maintenance fees, and other charges. Check your contract details.

Q3: What are typical rental rates in the Philippines?
A: Rates vary by location (Makati CBD: PHP 1,000-2,500/sqm; provincial areas: PHP 200-800/sqm).

Q4: How often are rental rates adjusted?
A: Most commercial leases include annual escalation clauses (typically 5-10% increase per year).

Q5: Is a security deposit required?
A: Yes, typically 2-3 months' rent as security deposit plus 1 month advance payment.