Go-Dark Risk Calculator

When an anchor goes dark (stops operating), inline tenants often trigger co-tenancy rights: reduced rent, kick-outs, or free rent. This calculator sizes the damage.

Annual inline base rent

% of tenants with co-tenancy rights

Rent reduction allowed under co-tenancy

% of tenants that may kick out

Cap rate

Total center value loss

$10,714,286

Annual NOI impact

$750,000

Rent reduction from co-tenancy

$450,000

Rent lost to kick-outs

$300,000

How the math works

Anchor goes dark → co-tenancy triggers → rent reductions + kick-outs → NOI collapse. At a 7% cap, every $70k of NOI loss = $1M of value destroyed.

Underwriters stress-test go-dark scenarios for retail acquisitions. Centers with weak anchor credit or short anchor lease should be priced 15-25% below peers with strong-credit anchors on long leases.

How to Use

Enter center base rent (annual).
Enter % of tenants with co-tenancy rights.
Enter rent reduction % those tenants can claim.
Enter % of tenants likely to trigger kick-out.
Enter cap rate.
Read total NOI and value impact.

Frequently Asked Questions

What is 'going dark'?

Tenant stops operating but continues paying rent. Examples: Kmart closed stores but kept paying lease; JC Penney stores dark. The landlord has no remedy under most leases unless there's an operating covenant.

Why does it matter?

Traffic drops 30-50% when anchor dark. Inline tenants lose sales, trigger co-tenancy, threaten kick-out. Center value can fall 25-40% even though anchor still pays rent.

How to protect?

Operating covenants (anchor must operate, not just pay), anchor minimum SQFT requirements, tenant-replacement rights, and early-termination penalties for going dark. Structure at lease signing — can't retrofit.