Non Disturbance Premium Calculator

NDA agreement protects tenant in foreclosure.

Baseline annual rent

NDA premium %

Term years

Discount rate %

PV of premium

$29,499

Annual premium

$4,200

Total face premium

$42,000

How the math works

Annual premium = rent × %. PV = sum discounted over years.

$420k × 1% = $4,200/yr. × 10 yr = $42k face. PV at 7% ≈ $29.5k — cheap insurance for NDA value.

How to Use

Enter baseline rent.
Enter NDA premium %.
Enter term years.
Enter discount rate.
Read PV of premium.

Frequently Asked Questions

What's NDA?

Non-Disturbance Agreement: lender agrees not to terminate tenant's lease if landlord defaults and foreclosure occurs. Tenant continues paying rent to new owner (lender or buyer). Protects tenant's occupancy and build-out investment.

Pricing?

Major creditworthy tenants get NDA routinely at no premium. Mid-size tenants: 0.5-1.5% premium. Small tenants: may not receive. Non-recourse lenders sometimes decline — typical structure: negotiate NDA before lease execution for material tenant.

Business impact?

Without NDA, tenant could be evicted in foreclosure despite lease. Premium cost minimal for institutional tenants; essential for large-scale build-out. Standard in modern leases — absence is red flag.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.