Occupancy Cost
Rent and related facility costs — base rent, NNN, percentage rent, and sometimes utilities — as a share of sales.
Last updated September 5, 2026
Occupancy cost is a core four-wall ratio for restaurants and retail. It usually includes base rent plus pass-throughs; some models add utilities or CAM. A low asking-price multiple does not help if rent resets at assignment or if sales cannot support the lease. Lenders and landlords both look at this ratio when judging sustainability.