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.

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.