Finance category
Mortgage, loan, investing, tax, and money calculators.
Lease Extension Economics Calculator
Extensions balance tenant retention against market-rent upside.
Extension advantage
$410,000
Re-lease net NPV
$1,790,000
Downtime cost
$360,000
How the math works
Re-lease net NPV = new rent NPV − downtime cost − TI/LC. Extension advantage = renewal NPV − re-lease net NPV.
$2.2M renewal vs $2.5M − $360k downtime − $350k TI/LC = $1.79M. Extension $410k advantage.
How to Use
- Enter renewal rent NPV.
- Enter new-tenant rent NPV.
- Enter downtime months.
- Enter TI/LC for new tenant.
- Read extension advantage.
Frequently Asked Questions
Renewal vs re-lease?
Renewal: no downtime, no new TI/LC, known tenant. Re-lease: downtime cost, TI/LC outlay, credit/fit risk. Renewal usually favorable unless market rents 15%+ above current. Institutional owners model each renewal decision individually.
Market rent premium needed?
To beat a renewal, re-lease must overcome: 6-12 months downtime rent loss, $15-50/SF TI allowance, 4-6% leasing commission. Break-even new-tenant rent typically 110-130% of renewal rent for a 5-year term.
Tenant quality?
Existing tenant with good payment history and stable business is worth 10-20% premium over unknown new tenant. Factor credit risk into NPV comparison. Investment-grade tenant renewal worth 5-10% below-market rent.
What documentation matters here?
Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring