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Radius Restriction Value Calculator

Radius clauses protect tenant sales.

$
%
%

Total lease value

$6,750,000

Annual sales uplift

$675,000

Annual rent impact

$40,500

How the math works

Annual uplift = sales × uplift %. Annual rent impact = uplift × percent rate. Total = uplift × years.

$4.5M × 15% = $675k/yr uplift. × 10 yr = $6.75M total value. Rent impact $40.5k/yr via percent rent.

How to Use

  1. Enter tenant annual sales.
  2. Enter percent rent rate %.
  3. Enter protected sales uplift %.
  4. Enter lease years.
  5. Read annual and total value.

Frequently Asked Questions

What is a radius clause?

Landlord agrees not to lease to competing tenant within a specified radius (1-3 miles typical). Protects tenant's sales volume. Valuable for differentiated retail, restaurants, specialty stores. Worth 10-25% of unprotected sales.

Typical terms?

1-mile radius: most urban. 2-3 mile: suburban. 5+ mile: rural/regional. Radius exclusions can carve out specific use types. Exclusivity durations: typically entire lease term. Landlord may demand premium rent for exclusivity.

Enforcement?

Contractual right vs landlord. Injunctive relief plus damages if breached. But proof of damage difficult — sales uplift hard to quantify. Settlement more common than litigation. Carefully scoped radius clauses reduce enforcement disputes.

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.

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