Dark Store Co Tenancy Cost Calculator

Dark stores trigger cotenancy even while paying. This calculator sizes.

Small tenants triggered

Avg small tenant annual rent

Small tenant abatement %

Go-dark duration months

Anchor annual rent still paid

Net NOI loss over dark period

$975,000

Small tenant abatement loss

$975,000

Anchor rent offset

$1,050,000

How the math works

Abatement loss = tenants × rent × % × months/12. Anchor continues paying = offset on paper. Net NOI loss = abatement (anchor rent continues and is needed baseline).

20 shops × $65k × 50% × 1.5 yr = $975k abatement. Anchor keeps paying $1.05M. Net NOI decline from base = ~$975k. Large hit despite anchor rent continuing.

How to Use

Enter small tenant count.
Enter avg small tenant rent.
Enter cotenancy abatement %.
Enter go-dark duration months.
Enter anchor rent still paid.
Read net NOI loss.

Frequently Asked Questions

Go-dark clauses?

Anchor tenant may keep paying rent but stop operating (dark). Small shops' cotenancy clauses often trigger on dark as well as vacancy, meaning landlord loses small-shop NOI even while anchor rent continues. Specifically lethal for box stores closing stores.

Why go dark?

Chain decision to close underperforming store while lease term remains. Easier to pay rent than negotiate termination. Often signals coming bankruptcy or corporate restructuring. Co-tenancy exposure often large enough that landlord initiates negotiation.

Landlord remedies?

Negotiate continuous operations covenant upfront. Build go-dark penalty or recapture right into lease. Broker subtenants. Swap anchor for replacement (rent gap vs cotenancy cost tradeoff). Fight through estoppel or assignment denial on transfers to intent-to-dark occupiers.