Lease Kickout Risk Calculator

Kickout rights let tenants exit below-performing leases. This calculator sizes NOI at risk from kickouts.

Actual sales PSF

Kickout threshold PSF

Annual rent

Remaining lease months

At-risk rent

$960,000

Gap to trigger

-8.6%

Trigger probability

High

How the math works

At-risk rent = annual rent × remaining years. If triggered, LL loses full stream.

A tenant 5-10% below threshold is one bad quarter from triggering. Pre-negotiate extension or reset sales thresholds when renewal comes — kickouts at refi are a debt-pricing hit.

How to Use

Enter tenant sales PSF.
Enter kickout sales threshold.
Enter annual rent.
Enter remaining months if triggered.
Read at-risk rent and trigger probability.

Frequently Asked Questions

What is a kickout?

Clause allowing tenant to terminate if gross sales don't hit a threshold by a specific measurement date. Common in retail. Gives tenant a free exit from underperforming stores.

Typical trigger?

Sales below threshold at 24-36 months. Tenant pays token fee (often nothing). Usually in shopping center leases with anchor-dependent locations.

Landlord defense?

High threshold, limited windows, requirement to pay capex unamortized share, co-tenancy protection for LL. Negotiate hard — kickouts destroy asset value on re-sale.

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.