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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.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Lease Renewal Concession Calculator is built to give a quick, browser-based estimate for lease renewal concession. Renewal concessions lower effective rent. This calculator sizes impact. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the lease renewal concession result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this lease renewal concession estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

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.