Inline Retail Spread Calculator

Rent-to-sales ratios by category predict tenant survival and rent capacity.

Sales per sqft

Base rent per sqft

CAM + tax per sqft

Category target %

Spread vs target (positive = tenant stress)

0.02%

Total occupancy %

0.14%

Available rent at target / SF

$40

How the math works

Occupancy % = (base + CAM + tax) ÷ sales. Spread = occupancy − target. Available = sales × target − CAM.

($48 + $14)/$450 = 13.78% vs 12% target = +1.78% over (tenant stressed). Available rent = $40/SF.

How to Use

Enter tenant sales per sqft.
Enter base rent per sqft.
Enter CAM + tax reimbursement per sqft.
Enter category target ratio %.
Read spread analysis.

Frequently Asked Questions

What are typical rent-to-sales ratios?

Quick service restaurant (QSR): 6-10%. Sit-down restaurant: 8-12%. Apparel: 10-14%. Jewelry: 4-7%. Electronics: 3-5%. Grocery: 1.5-2.5% (high-volume, low-margin). Home improvement: 3-5%. Services (hair, nails): 8-15%. Medical office: 10-18%. Pet stores: 10-14%. Cell phone retailers: 10-15%. Above these ratios, tenant struggles; below, landlord might be undercharging.

Why do ratios matter?

Rent coverage ratio is a tenant health metric. If tenant signs at 15% when category norm is 10%, tenant stresses margins and may default. Landlord wants lower ratio (tenant pays less per sales dollar) counterintuitively — shows tenant has capacity. Negotiation: push landlord rent toward category high; tenant defends at category low or below. Each percentage point can decide tenant viability.

CAM + tax inclusion?

Include these in total occupancy cost, not just base rent. Full occupancy = base + CAM + tax + utilities (if separately metered). On strip mall: CAM + tax adds 20-35% to base rent. Mall: 30-50%. Enclosed shopping center: varies by anchor mix. Total occupancy rent-to-sales ratio should stay within category norms. Otherwise tenant is one down-year from failure.

How to use this in underwriting?

Verify tenant sales before signing. 6-12 months financial review. Compare to category benchmark. If tenant signs at rent implying 15% rent-to-sales but only doing 80% of category average sales, underlying rent signing ratio is actually 18-19%. That tenant is structurally unviable. Underwriting red flag worth walking away from. Institutional landlords require sales verification; amateur landlords sign anyone.