Lease Recapture Value Calculator

Landlords sometimes recapture space in response to sublet requests. This calculator sizes the value.

Remaining contract obligation

New market rent monthly

Downtime months

Releasing TI & commission

Remaining months

Discount rate

Recapture advantage

-$362,714

New rent PV after downtime

$1,944,739

Contract rent PV

$2,127,454

How the math works

Compare PV of new market rent (after downtime) less releasing costs vs PV of existing contract rent.

Recapture pays when spread is meaningful and downtime short. On a 20% rent uplift with 4 months downtime and normal TI/commissions, recapture typically creates $150-400k of value on a mid-size office lease vs consent to sublease.

How to Use

Enter remaining rent obligation.
Enter new market rent monthly.
Enter re-lease downtime months.
Enter re-lease TI & commission.
Enter discount rate %.
Read recapture advantage.

Frequently Asked Questions

Why landlords recapture?

When subtenant offers market rent higher than contract rent, recapture lets landlord capture the spread. Also used defensively to block competitor occupancy or protect tenant mix. Recapture right typically negotiated in initial lease.

Math drivers?

Spread between market and contract rent × remaining term, minus re-lease downtime and TI/commission cost. Positive = recapture preferred. Negative = consent to sublease preferred. Typical breakeven around 15-25% rent spread on 5-year remaining.

Market timing?

Rising market favors recapture (capture mark-to-market gain). Falling market favors consent to sublease (maintain contract rent). Mid-cycle often indifferent; other factors (tenant mix, covenant risk) drive decision.