Lease Spread Variance Calculator

Lease spreads reveal pricing power. This calculator computes new, renewal, and blended spreads.

Expiring rent

New lease rent

Renewal rent

Renewal share %

Blended spread %

5.83%

New lease spread %

8.15%

Renewal spread %

3.93%

How the math works

Blended = renewal spread × renewal share + new spread × (1 − renewal share).

Tie the onsite team's bonus to blended spread, not raw occupancy. Occupancy bonuses push toward over-renewal and below-market — blended spread bonuses push toward discipline, which is what NOI needs.

How to Use

Enter average expiring rent.
Enter average new lease rent.
Enter average renewal rent.
Enter % of rollover that renews.
Read blended spread.

Frequently Asked Questions

What spreads signal?

Positive spreads = pricing power. Negative spreads = market weakness or prior mispriced lease. Mixed (new positive, renewal negative) suggests renewal pricing discipline gap. Track each separately to diagnose where issues live.

Renewal vs new spread?

Healthy MF: renewal 3-6%, new 5-12%. Renewal spread below new by 3-5 pts is common (retention value). Gap >8 pts means managers are over-discounting renewals to avoid vacancy — costs more NOI than the vacant day saves.

Measurement pitfalls?

Quote rent vs effective rent (net of concessions). Same unit vs different unit (mix shift). Annualized vs month-to-month. Lease term differences. Pick one convention and stick to it across reporting periods.