Lease Restructure Savings Calculator

Restructures trade term for rent. This calculator sizes NPV savings.

Existing annual rent

Remaining term years

Proposed annual rent

Proposed new total term

Discount rate %

Landlord concession (TI / cash)

Tenant NPV savings

-$752,628

Existing obligation PV

$1,625,861

Restructured obligation PV

$2,528,489

How the math works

Old PV = discounted sum of remaining rents. New PV = discounted sum over new term. Savings = old − new + concession.

$480k × 4 yr at 7% ≈ $1.62M PV. $360k × 10 yr ≈ $2.53M. Swap nets −$910k before concession; +$150k concession = −$760k to tenant PV — unattractive restructure at stated terms.

How to Use

Enter existing rent.
Enter remaining term years.
Enter proposed new rent.
Enter proposed new term.
Enter discount rate %.
Enter one-time landlord concession.
Read tenant NPV savings.

Frequently Asked Questions

When to restructure?

Rent far above market, financial distress, or approaching renewal with a strong market shift. Landlord agrees to reduce rent in exchange for extended term, signed guarantee, or capital refresh. Reduces vacancy risk in return for lower face rent.

How to evaluate?

Compare NPV of existing obligation vs NPV of restructured obligation (plus any concession given by landlord). Typical target: 10-25% rent reduction in exchange for 3-7 additional term years. Both sides win when the restructure avoids go-dark and expensive re-tenanting.

What about landlords?

Landlords model restructure vs release math: new rent × new term PV vs existing rent × remaining PV plus replacement probability × (vacancy cost + TI/LC). Restructure often wins if market rents have dropped or if tenant is a flight risk.