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Landlord Recapture On Assignment Calculator

Recapture rights trigger re-leasing. This calculator sizes the upside.

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Net recapture value

$52,000

Gross rent uplift

$70,000

Annual uplift

$14,000

How the math works

Annual uplift = market − in-place. Gross = annual × years. Net = gross − recapture cost.

On $14k annual uplift × 5 years − $18k cost = $52k net recapture value. Recapture economically rational when net-of-cost gain exceeds the friction of new tenancy and lease-up risk. Mark-to-market leases at renewal — but recapture via assignment is the earlier opportunity.

How to Use

  1. Enter current lease rent.
  2. Enter current market rent.
  3. Enter remaining lease term.
  4. Enter recapture vacancy cost.
  5. Read recapture upside.

Frequently Asked Questions

When valuable?

Recapture valuable when market rent materially exceeds in-place rent. Landlord terminates lease, re-leases at market. Especially valuable on long-term below-market leases where tenant wants to assign. Landlord captures mark-to-market upside.

When not?

Recapture destructive when below-market rent and tenant offers qualified assignee. Landlord vacates space, incurs re-lease cost, may get same or lower rent. Typically landlord only recaptures when math works significantly in landlord's favor.

Drafting?

Lease gives landlord 30-60 days to recapture upon receiving assignment notice. Recapture terminates lease without penalty. Some leases require landlord to accept assignee or recapture (no 'maybe'). Sophisticated landlord keeps recapture option broad.

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