Midterm Rent Mark To Market Calculator

Midterm resets protect landlord in long leases.

Starting rent PSF

Reset year

Market rent at reset PSF

Years after reset

Discount rate %

Reset uplift PV

$642,678

Annual uplift

$180,000

Reset value PSF

$12.00

How the math works

Uplift PSF = market − starting. Annual = uplift × SF. PV = annual sum discounted from reset year.

$12/SF × 15k = $180k/yr uplift. PV from year 11-20 at 7% ≈ $644k reset PV — material protection.

How to Use

Enter starting rent PSF.
Enter reset year.
Enter market rent at reset PSF.
Enter SF.
Enter remaining years after reset.
Enter discount rate.
Read PV of reset uplift.

Frequently Asked Questions

When used?

Long leases (15-30 years) often include 5-year or 10-year mark-to-market resets. Protects landlord from falling below-market rent over long term. Uses appraisal to determine market rate, with floor of prior rent.

Reset mechanics?

At reset date, independent appraisals determine market rent for comparable space. Rent resets to appraised rate (usually with 10-20% buffer floor). Escalates from new base. Tenant may have put (terminate) if reset too high.

Value?

20-year lease at $30 PSF, 10-year reset to $42 PSF market: NPV of $12/SF × 10 years × 10,000 SF = $1.2M face = $860k PV at 7%. Material value for landlord in rising markets.