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.
Birmingham is Alabama's largest city with a commercial market driven by healthcare (UAB Health System), finance, and manufacturing. Affordable occupancy costs attract regional headquarters. Alabama is a landlord-friendly state.
By Angel Campa, Founder · Updated March 2026
Commercial Space
35M sq ft
Avg Office Rent
$14–$22/sq ft
Vacancy Rate
18%
Avg Lease Term
5–10 years
Birmingham office is Modified Gross or NNN. UAB healthcare campus leases are specialized. Industrial is NNN.
Alabama Landlord–Tenant Guide
State-specific commercial lease laws, notice periods, and tenant rights for Alabama →
UAB is the dominant economic force, generating large medical campus and research facility leases. Finance sector back-office and Regions Bank operations add traditional office demand.
A complete reference for commercial lease financial terms. Covers base rent, escalations, NNN vs gross, TI allowances, and percentage rent with examples.
How to calculate commercial lease rent escalations for fixed annual increases, CPI adjustments, and percentage rent. With worked examples.
How to identify, track, and manage commercial lease critical dates -- renewal notices, audit deadlines, rent escalations, and more -- across a portfolio.
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