Blend And Extend Calculator

Blend-and-extend resets rent for term. This calculator sizes the blended rate.

Current rent $/sf

$/sf

Market rent $/sf

$/sf

Remaining months

Extension months

Sqft

Blended rent $/sf

34.5

Tenant near-term savings

$675,000

Landlord extended rent

$5,175,000

How the math works

Blended rate averages contract and extension economics across total term; tenant saves near-term; landlord captures extended occupancy.

Blend and extend pencils well when market rents dropped 15%+ and the landlord values extended commitment. A $42/sf contract blended with $30/sf extension over 8 years lands around $34-36/sf, offering the tenant meaningful near-term relief and the landlord 5 additional years of revenue certainty.

How to Use

Enter current rent $/sf.
Enter new market rent $/sf.
Enter remaining original months.
Enter extension months.
Enter sqft.
Read blended rent and total savings.

Frequently Asked Questions

What is blend and extend?

Tenant and landlord restructure lease mid-term. Remaining rent is blended with new market rent across an extended term. Tenant gets lower near-term rent; landlord gets longer term and rent certainty. Common during market downturns.

Who benefits?

Tenant: immediate cash flow relief without termination cost. Landlord: extended occupancy, eliminated downtime, preserved valuation multiple. Works when both parties have stake in ongoing relationship and market shift.

Math?

Total rent dollars over blended period stays similar to contract minimum. Tenant savings come from reducing near-term payments; landlord captures extended term value. Check NPV at both parties' discount rates — often positive for both.