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Co-Tenancy Cure Cost Calculator

Co-tenancy violations trigger rent relief for non-anchor tenants. This calculator sizes the cost to cure.

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Total cure cost

$990,000

Abatement loss

$240,000

Monthly abatement

$20,000

How the math works

Cure cost = abatement during dark + anchor replacement capex/TI. Both hit at the same time.

Model anchor replacement as 9-15 months of effort including capex, broker fees, and tenant improvement allowance. Plan the rent hole into year-1 pro forma.

How to Use

  1. Enter inline tenant rent (annual).
  2. Enter abatement % during violation.
  3. Enter months to re-tenant anchor.
  4. Enter anchor replacement cost.
  5. Read total cure cost.

Frequently Asked Questions

When does it trigger?

Anchor closes or goes dark. Named co-tenant leaves. Shopping center occupancy drops below contract threshold (often 70-80%). Inline tenants activate rights automatically.

Typical abatement?

25-50% rent reduction for 6-18 months. After that, tenant can terminate. Many leases escalate: 25% first 6 months, 50% months 6-12, termination at 12.

Prevention?

Keep anchor leases current. Preemptively market anchor space if early signs of closure. Shoulder cure cost in deal financial planning — don't get surprised.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.

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