Kick Out Clause Trigger Calculator

Kick-out clauses let tenants exit. This calculator tests triggers.

Actual annual sales

Kick-out threshold sales

Consecutive measurement years

Annual rent

Sales gap below threshold

$600,000

Kick-out eligible (1=yes)

At-risk rent (if exercised)

$360,000

How the math works

Gap = threshold − actual. Eligible if below threshold for required years.

A tenant $600k below threshold with 2-year requirement triggers kick-out eligibility. At $180k annual rent, landlord at risk for full lease remainder (average 3-5 years remaining = $540k-$900k rent loss + re-leasing cost). Negotiate kick-out carefully during lease drafting.

How to Use

Enter actual annual sales.
Enter kick-out threshold sales.
Enter kick-out measurement years.
Enter rent amount.
Read gap and kick-out eligibility.

Frequently Asked Questions

Typical structure?

Retail tenant can terminate if gross sales fall below threshold for 2-3 consecutive measurement years. Threshold typically set at 70-85% of pro forma year-3 sales. Gives tenant exit if location underperforms. Common in power centers, small retail.

Measurement method?

Rolling 12 months or fiscal-year sales. Reported by tenant under audit rights. Disputes arise over: e-commerce attribution, in-store pickup, returns, excluded products. Landlord review before accepting kick-out notice.

Landlord counter?

Sales threshold on gross receipts (higher base). Exclude ecommerce from measurement. Require cure payment to exercise kick-out (e.g., 6 months' rent). Require 6-12 month notice. Negotiate hard — kick-out provisions shift risk fully to landlord.