How to Read a Commercial Lease Comp Like a Pro

SKIP AHEAD TO:

• What Is a Commercial Lease Comp?
• Key Components of a Lease Comp
• How CompStak Makes Lease Comps More Powerful
• Tips for Reading Lease Comps Like a Pro
• The Bottom Line

Why Lease Comps Matter in CRE

In commercial real estate (CRE), few tools are as powerful as the lease comp. Short for “lease comparable,” a lease comp provides a snapshot of the terms and structure of a recently executed lease, offering invaluable context for landlords, brokers, investors, and tenants. Whether you’re pricing a new listing, underwriting an asset, or preparing for lease negotiations, understanding how to read a lease comp is a core skill—and a strategic advantage.

In this blog, we’ll break down how to read a commercial lease comp like a pro, what key elements to pay attention to, and how platforms like CompStak make the process faster, easier, and more accurate with verified CRE data.

What Is a Commercial Lease Comp?

A commercial lease comp is a record of lease terms between a tenant and landlord for a specific property. These comparables are used to benchmark market conditions, guide negotiations, and support investment decisions.

CRE professionals rely on platforms like CompStak to access up-to-date lease comps across office, retail, and industrial property types. Unlike public records, lease comps often include terms that aren’t easily accessible elsewhere, such as tenant improvement (TI) allowances, free rent periods, or escalation structures.

Key Components of a Lease Comp

1. Property Details
   • Address, asset class (office, retail, industrial), building class (A, B, C)
   • Total rentable square footage (RSF)
2. Tenant Information
   • Tenant name, industry, use type (e.g., HQ, retail showroom, distribution)
3. Lease Terms
   • Lease start and end dates
   • Lease term length (e.g., 5 years, 10 years)
   • Lease type (e.g., triple net lease, full-service, modified gross)
4. Rental Rates
   • Base rent (per RSF, annually)
   • Effective rent (adjusted for concessions)
   • Rent escalations over the lease term
5. Concessions
   • Free rent periods
   • Tenant improvement (TI) allowances
   • Moving or build-out incentives
6. Additional Clauses
   • Renewal or expansion options
   • Co-tenancy clauses (in retail)
   • Termination or early-exit clauses

How CompStak Makes Lease Comps More Powerful

CompStak aggregates and verifies lease data directly from a network of trusted CRE professionals, including brokers, landlords, and researchers. Unlike unverified listings or anecdotal intel, CompStak lease comps offer:

• Verified lease terms from actual executed deals
• Advanced filtering by market, property type, lease size, deal date, and more
• Side-by-side comparisons to evaluate multiple comps at once
• Retail, office, and industrial comps with granular concession and escalation details

With CompStak, users can identify trends in tenant improvement allowances, free rent periods, and effective rents across different markets—helping them negotiate smarter and underwrite more accurately.

Tips for Reading Lease Comps Like a Pro

• Always look at effective rent, not just face rent. It reflects the real value of the lease after concessions.
• Compare comps by asset class and location. Class A office rents in Midtown Manhattan won’t compare to Class B office space in suburban Atlanta.
• Pay attention to timing. A comp from 2021 may no longer reflect current market conditions, especially in a volatile environment.
• Use multiple comps to establish a range. One comp alone doesn’t tell the whole story; professionals typically analyze 3–5 comps for pricing guidance.
• Factor in lease type. NNN leases shift cost burdens to tenants, while full-service leases include most expenses in the base rent.

The Bottom Line

Reading a lease comp is part art, part science—and all strategy. Whether you’re a broker prepping for a pitch, an investor underwriting a retail center, or a tenant preparing to renegotiate terms, knowing how to interpret lease comps can mean the difference between a good deal and a great one.

With CompStak’s verified lease data and market insights, CRE professionals have the tools they need to analyze comps with confidence, benchmark lease terms accurately, and make data-driven decisions that lead to better outcomes.

Ready to analyze lease comps like a pro?

Explore CompStak’s platform and see how the right data transforms your CRE strategy.