Lease Restructure Calculator

Struggling tenants often ask for restructure: rent cut, deferral, or extended term. This calculator PVs the concession so landlords can accept/reject on dollars, not emotion.

Current monthly rent

Months remaining on lease

Proposed monthly rent

Extension added (months)

Discount rate (annual)

PV of concession (old − new)

-$69,725

PV of current lease

$485,797

PV of restructured lease

$555,522

How the math works

Restructure decisions should be dollar-driven: discount both cash flow streams at your cost of capital and compare present values.

If PV of restructured lease beats PV of alternatives (vacancy + re-lease cost), do the deal. If not, negotiate harder or accept tenant default. Never decide on sentimentality.

How to Use

Enter current monthly rent and months remaining.
Enter proposed monthly rent.
Enter extension months added.
Enter discount rate.
Compare PV of old vs new deal.

Frequently Asked Questions

When should I restructure?

When tenant default is the alternative. Vacancy + downtime + TI/LC to re-tenant is usually $50-$100/SF of damage. If restructure keeps rent above that break-even, it's a win.

What should I demand?

Extension of term, personal guaranty, increased security deposit, reporting covenants, right to recapture lost rent on sale. Never give concession without getting something back.

What about tenant quality?

Restructure only makes sense if the tenant will survive. Look at trailing 12-month sales, tenant credit, or franchise-level P&L. Propping up a dying tenant burns you twice.