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Blended Rent Step Calculator

Step rents roll up to a blended average. This calculator computes it.

$
%
SF
%

Blended rent PSF

$36.85

Total rent (face)

$5,342,662

Rent NPV

$3,652,320

How the math works

Each year's rent = Y1 PSF × (1+step)^(y−1) × SF × adj months/12. Sum for total. Discounted for NPV.

$32 + 3% steps × 10 yr, 15k SF, 4 months free: total ~$5.36M face, blended ~$35.7/SF, NPV ~$3.7M at 7%.

How to Use

  1. Enter Year 1 rent PSF.
  2. Enter annual step %.
  3. Enter term years.
  4. Enter rentable SF.
  5. Enter free rent months.
  6. Read blended rent PSF and NPV.

Frequently Asked Questions

Why blend?

Face rent schedules typically step annually. Underwriting requires a single blended figure comparable to market. Blended rent = total rent paid over term / total rentable months (excluding free rent adjustment for a straight average).

What about free rent?

Free rent months shift calculations. True effective rent nets free rent from total; blended face often reported gross. Always clarify which — face rent is stronger for comps, effective rent is stronger for NPV.

Which to use?

Blended face rent for market comparables and listing. Effective rent (PV-weighted, net of TI and free rent) for investment underwriting. Accountants use straight-line rent (total / months) for GAAP. Never conflate.

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