BUSINESS OCCUPANCY CAPACITY · CANADAHow much space
How much space
can the business support?
Translate an operating forecast into an explicit occupancy-cost limit, then test the proposed rent stack, percentage rent and downside sales cases before the requirement reaches the market.
01 · BUSINESS CASE
Set the denominator before judging the rent.
Enter a supportable revenue case and the occupancy-cost limit approved for this decision. No target is supplied by the platform.
02 · OCCUPANCY COST STACK
Build the annual cost before calculating the ratio.
Separate lease payments from operating costs so the result shows exactly what was included—and what was not.
03 · PERCENTAGE RENT
Expose the breakpoint and the sales definition.
The model applies the entered rate only above the selected breakpoint. Confirm every lease definition, exclusion and reporting rule separately.
04 · AFFORDABILITY READOUT
One ratio, with the complete arithmetic visible.
Draft saves on this device
OCCUPANCY COST RATIO9.33%
$224,000 ÷ $2,400,000 entered revenue
0%Entered target 10%Higher ratio
05 · SALES SENSITIVITY
See the operating leverage before signing.
Each row holds the fixed cost stack constant, recalculates percentage rent and compares the result with the same entered target.
| Sales case | Annual revenue | % rent | Occupancy cost | Ratio | Target variance | Max base rent / SF |
|---|---|---|---|---|---|---|
| -20% sales | $1,920,000 | $0 | $200,000 | 10.42% | +$8,000 | $26.00 |
| -10% sales | $2,160,000 | $9,600 | $209,600 | 9.70% | -$6,400 | $29.60 |
| Entered sales | $2,400,000 | $24,000 | $224,000 | 9.33% | -$16,000 | $32.00 |
| +10% sales | $2,640,000 | $38,400 | $238,400 | 9.03% | -$25,600 | $34.40 |
| +20% sales | $2,880,000 | $52,800 | $252,800 | 8.78% | -$35,200 | $36.80 |
06 · CONNECTED WORKFLOW
Carry the approved budget into the space requirement.
The handoff transfers the organization, business model and monthly all-in capacity. It does not overwrite an existing requirement draft or publish the data.
07 · REVIEW QUEUE
Resolve the business-case gaps before the lease decision.
No critical arithmetic conflict is present; business and document review still remain.
MODEL BOUNDARY
A capacity screen is not a promise of affordability.
- This is a user-entered planning model. It does not determine whether a business can afford a lease, predict sales, set an appropriate occupancy-cost target or replace a business plan, cash-flow forecast or professional advice.
- Occupancy cost includes only the entered rent and operating components. Payroll, cost of goods sold, debt service, taxes, capital expenditures, fit-up, deposits, moving, financing and GST/HST are excluded unless deliberately represented in an entered cost.
- Revenue, gross margin, target occupancy-cost percentage, percentage-rent terms and stress range are user assumptions—not industry benchmarks or verified market evidence.
- Percentage rent is modelled as the entered rate applied only to sales above the selected breakpoint. The executed lease may define sales, exclusions, reporting periods, audits, natural breakpoints and rent interactions differently.
- A positive capacity gap means the entered occupancy proposal exceeds the entered revenue-based target. It is a planning variance, not a recommendation to accept, reject or renegotiate a lease.
UNDERSTAND THE RATIO BEFORE USING IT
Read the affordability guide →Define the cost stack and denominator.
Learn how occupancy-cost ratios, gross margin, percentage rent, breakpoints and sales stress cases should be documented before they become a lease budget.