Co-Tenancy Risk Calculator

Co-tenancy clauses in retail leases give in-line tenants the right to reduce rent or terminate if a named anchor vacates and isn't backfilled. Triggered clauses can cascade across 20-40% of NOI in struggling centers, making co-tenancy one of the largest unpriced risks in retail underwriting. This calculator quantifies the NOI hit during the backfill window.

Tenant annual rent

Co-tenancy clause rent reduction %

If trigger met

Anchor vacant?

Months to backfill anchor

Total NOI loss during backfill

$90,000

Monthly NOI loss

$7,500

Tenant reduced annual rent

$90,000

Clause status

Triggered

How the math works

Co-tenancy clauses give in-line retail tenants the right to reduce rent (often by 50%) or terminate the lease if a named anchor tenant vacates and isn't backfilled within a defined window (often 6-18 months).

After Toys R Us, Sears, and JC Penney bankruptcies, co-tenancy clauses became one of the largest unfunded liabilities at struggling retail centers — a single anchor loss could cascade into 20-40% NOI reduction across the in-line shops.

How to Use

Enter the in-line tenant's annual rent.
Enter the rent reduction percent triggered by the co-tenancy clause (typically 50%).
Indicate whether the anchor is currently vacant.
Enter expected months to backfill the anchor.
Read total NOI loss during the backfill window.

Frequently Asked Questions

What triggers a co-tenancy clause?

Most clauses name a specific anchor tenant or class (e.g., 'one of two named anchor tenants') and trigger if vacant for >180 days without a credit replacement of equal SF.

Tenant remedies?

(1) Rent reduction to 50% (or to alternative rent of 1-3% of sales); (2) lease termination right after a fixed period (often 12-18 months without backfill); (3) escape from CAM contributions.