Lease Renewal Rent Premium Calculator

Renewals differ from new leases. This calculator compares.

Current rent

New lease market rent

Renewal rent negotiated

Renewal discount vs market

6.98%

Renewal rent increase %

11.11%

Annual foregone

$15,000

How the math works

Discount vs market = (market − renewal) / market. Renewal increase vs current = (renewal − current) / current.

Current $180k, new-lease market $215k, renewal $200k: 6.98% discount vs market, 11.1% bump vs current. $15k/yr foregone vs new lease — trade-off for avoided vacancy + TI savings.

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 Rent Premium Calculator is built to give a quick, browser-based estimate for lease renewal rent premium. Renewals differ from new leases. This calculator compares. 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 rent premium 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 rent premium 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 current rent.
Enter new lease market rent.
Enter renewal rent negotiated.
Read renewal discount/premium.

Frequently Asked Questions

Typical renewal pattern?

Renewals usually below new-lease market. Tenants negotiate; landlord accepts modest discount to retain. Typical: 3-8% below new lease rent. Retention value ($15-25/SF in office TI avoided) justifies discount. Very hot markets: renewals at or above new.

When above market?

Tenant locked into existing location (operational disruption of moving). Built-out investment they can't recover. Credit-challenged (no alternatives). Landlord exploits captive renewal — risky long-term for relationship.

Concession scale?

Renewal TI: 25-50% of new-lease TI. Renewal free rent: 0-2 months vs 6-12 new lease. Renewal LC: 50% of new lease (same broker-of-record doesn't double-dip). Net landlord cost of renewal: 30-50% of new lease fit-out.