Lease Renewal Concession Calculator

Renewal concessions lower effective rent. This calculator sizes impact.

Face rent/SF

Free rent months

TI $/SF

Lease term years

Space SF

Effective rent $/SF

$28

Total concession value

$172,833

Rent reduction %

12.71%

How the math works

Effective = (face total rent − free rent − TI) ÷ (years × SF). Rent reduction = (face − effective) ÷ face.

Always calculate effective rent both ways: with and without free rent/TI amortized into the effective rate. Tenants often quote face; landlords quote effective. Miscommunication on this basis is the most common cause of stalled renewal negotiations.

How to Use

Enter face rent/SF.
Enter free rent months.
Enter TI $/SF.
Enter lease term years.
Enter space SF.
Read effective rent.

Frequently Asked Questions

Typical concessions?

Office renewals: 1-3 months free rent + $5-25/SF refresh TI. Retail: 1-2 months free + minor TI. Industrial: 0-1 month free. Lower concessions for shorter renewals; heavier for 10+ year deals.

Face vs effective?

Face rent: stated headline rate. Effective rent: face minus concessions amortized over term. Deep concessions can cut effective rent 15-30% below face. Always compare effective-to-effective across competing deals.

Retention math?

Renewal cost (concessions + TI) vs turn cost (vacancy + re-leasing commission + new tenant TI). Retention typically costs 30-60% of turn cost. Justifies concessions up to that gap. Beyond, may as well non-renew.

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.