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Blended Lease Rate Calculator

Blend-and-extend renewals are landlord-tenant negotiations that take an existing lease's remaining term, blend it with new extension-term rent, and produce a single ongoing rate. Useful when the landlord wants to lock in WALT and the tenant wants to lock in current pricing — both sides share the market gap. This calculator computes the SF blended rate and the implied extension uplift.

$
$

Blended rate / SF

$34.29

Extension uplift / SF

$6.00

Uplift %

20.00%

Total blended term (yrs)

7

How the math works

Blended lease rate = weighted average of remaining-term rent and extension-term rent. Used in 'blend-and-extend' negotiations where landlord trades immediate rent visibility for committed extension term, allowing both sides to share market upside or downside.

In a soft market, blend-and-extend lets the landlord lock in a lower-than-asking renewal rent in exchange for term extension — protecting NOI and avoiding downtime.

How to Use

  1. Enter current rent/SF and remaining lease term (years).
  2. Enter proposed extension rent/SF and extension term (years).
  3. Read the blended rate and the year-over-year uplift.

Frequently Asked Questions

When does blend-and-extend favor landlord?

When market rents are flat or rising and tenant has strong renewal probability — landlord locks in extended term and modestly higher rent without re-leasing risk or TI.

When does it favor tenant?

When market rents are falling — tenant locks in below-market extension rate that wouldn't be available at lease-end. Landlord avoids likely lower-rent renewal.

Does it include TI?

Often yes — landlord offers retention TI ($5-30/SF) and small free-rent concession in addition to blended rate.

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