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.
Denver has approximately 90 million square feet of commercial space, driven by energy, technology, and a diverse professional services sector. The CBD and LoDo submarkets feature Class A FSG and Modified Gross office. The energy sector's boom-and-bust cycles have historically driven significant sublease activity, making sublease and assignment provisions critical to abstract.
By Angel Campa, Founder · Updated March 2026
Commercial Space
90M sq ft
Avg Office Rent
$32–$50/sq ft
Vacancy Rate
23%
Avg Lease Term
5–10 years
Denver CBD office uses Modified Gross or FSG with base year stops. Suburban office parks and industrial are NNN. The energy sector's cycles have left a legacy of complex sublease structures and early termination provisions in the office market.
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Denver's energy sector drives boom-and-bust office demand cycles. Tenants—especially energy companies—often need early termination flexibility. Lextract flags any lease missing a termination option as a red flag for portfolio risk management.
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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