Blend And Extend Deal Value Calculator

Blend-and-extend trades rate for term.

Current annual rent

Remaining years

Blended annual rent

Total new term years

Discount rate %

Landlord NPV (blend vs existing)

$1,707,982

New term PV

$3,020,140

Existing PV

$1,312,158

How the math works

Existing PV = sum discounted current rent over remaining. New PV = sum discounted blended over new term. Landlord NPV = new − existing.

$500k × 3 yr at 7% ≈ $1.31M. Blended $430k × 10 yr = $3.02M. Net +$1.71M landlord NPV — strong deal.

How to Use

Enter current rent.
Enter remaining years.
Enter blended rent.
Enter total new term years.
Enter discount rate.
Read landlord NPV of blend-and-extend.

Frequently Asked Questions

Basic structure?

Tenant's current rent above market; tenant wants reduction. Landlord trades reduction for longer term + extension of commitment. Benefits both sides: tenant lowers rent, landlord secures cash flow and avoids turnover risk.

When it works?

Tenant flight risk high. Market rents softening. Landlord has capacity to extend (no planned redevelopment). Alternative: pure market renewal (sometimes lower than current). Blend-and-extend often finds middle ground both parties accept.

Modeling?

Landlord NPV: PV of new long stream vs PV of existing + replacement cost + risk. Winning proposal = both positive NPV. Typical trade: 5-15% rent reduction for 5-10 year extension. Results vary by market cycle and tenant credit.