Understanding Commercial Lease Financial Terms: Base Rent to Percentage Rent
A complete reference for commercial lease financial terms. Covers base rent, escalations, NNN vs gross, TI allowances, and percentage rent with examples.
Lextract extracted 126 fields from a datacenter lease with phased power delivery: per-kW pricing model, 3-phase commencement schedule, and 1 MW total capacity.
By Angel Campa, Founder · Updated March 2026
Location
Ashburn, VA
Size
22,000 RSF
Annual Rent
$2.6M/yr
Term
84 months
Tenant
Danger Inc.
Landlord
Digital Realty
Datacenter leases are priced per kilowatt of power capacity, not per square foot, and delivered in phases as power infrastructure is built out. Extracting the correct rent requires understanding the power-based pricing model and the phased delivery schedule where rent escalates as each phase goes live.
Lextract identified the datacenter lease structure, extracted the power capacity (1 MW total across 3 phases), the per-kW monthly pricing, and the phased commencement schedule with rent amounts for each phase. The $120/kW/month pricing was extracted and converted to both annual rent and effective $/RSF for comparison purposes.
126
Fields Extracted
Under 3 minutes
Extraction Time
| Field | Extracted Value | Why It Matters |
|---|---|---|
| Pricing Basis | Per kW power capacity | Datacenter leases priced on power, not RSF — must convert for rent roll |
| Total Power Capacity | 1,000 kW (1 MW) | Power capacity determines maximum workload and future expansion |
| Monthly Rate | $120/kW/month | Ashburn Tier III colocation market rate — benchmark for portfolio |
| Phase 1 Commencement | 400 kW — Month 1 | Initial rent obligation begins on Phase 1 delivery |
| Phase 2 Commencement | 400 kW — Month 7 | Rent escalates when Phase 2 power goes live |
| Phase 3 Commencement | 200 kW — Month 13 | Final phase completes full 1 MW commitment |
Lextract recognizes datacenter pricing models and extracts the per-kW rate, total contracted power, and computes the effective annual rent. It also converts to effective $/RSF for comparison with the rest of your portfolio.
Phased delivery leases have multiple commencement dates, escalating rent obligations, and sometimes different terms or rates per phase. Lextract extracts each phase separately and computes the blended rent at full stabilization.
A complete reference for commercial lease financial terms. Covers base rent, escalations, NNN vs gross, TI allowances, and percentage rent with examples.
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