Lease Turnover Allowance Calculator

Turnover cost is the true re-tenanting burden.

Rentable SF

TI per SF

Leasing commission %

Annual rent

Downtime months

Free rent months

New term years

Total turnover allowance

$1,302,000

TI cost

$840,000

Downtime + free rent

$315,000

How the math works

TI = SF × $/SF. LC = annual rent × term × %. Downtime = rent × (downtime+free months)/12. Sum = total turnover burden.

12k SF × $70 = $840k TI. $420k × 7 × 5% = $147k LC. $420k × 9/12 = $315k downtime/free. Total ~$1.3M — 3+ years of rent.

How to Use

Enter SF.
Enter TI PSF.
Enter leasing commission %.
Enter annual rent.
Enter downtime months.
Enter free rent months.
Read total turnover allowance.

Frequently Asked Questions

What costs count?

Tenant improvements (TI), leasing commissions (new + renewal splits), downtime (vacancy) lost rent, free rent concessions, legal, space marketing, and building costs (HVAC re-commissioning, lobby improvements allocated). Total is the real re-tenanting cost.

Typical magnitudes?

Office: $60-150/SF combined for relocation, $20-60/SF for renewal. Industrial: $5-25/SF + 4-6 months downtime. Retail: $30-100/SF. These TI/LC/downtime numbers often rival 2-4 years of rent — material drag on levered IRR.

How to reduce?

Longer lease terms amortize cost over more rent. Early-renewal incentives before downtime risk. Spec suites to shorten build-out. Broker incentive structures. Build in escalators vs flat TI. Model net effective rent after TI/LC to avoid mispricing.