Radius Restriction Violation Calculator

Radius restrictions protect landlord. This calculator sizes breach damages.

Tenant annual sales

Estimated sales diversion %

% rent rate

Measurement years

Total damages

$136,080

Diverted sales

$756,000

Annual rent loss

$45,360

How the math works

Diverted sales = tenant sales × diversion %. Rent loss = diverted × % rent rate. Total = rent loss × years.

On $4.2M sales with 18% diversion at 6% percentage rent over 3 years: $136k total damages. Radius restrictions plus liquidated damages clauses give landlord enforceable remedy — courts tend to award when well-drafted.

How to Use

Enter tenant annual sales.
Enter estimated sales diversion %.
Enter % rent rate at tenant.
Enter measurement years.
Read estimated damages.

Frequently Asked Questions

What's a radius restriction?

Lease clause prohibiting tenant from operating competing store within defined radius (often 1-5 miles) for defined term. Protects landlord percentage rent and tenant mix. Standard in retail/restaurant anchor leases.

Why enforced?

Breach harms landlord (% rent declines, anchor draw diluted). Damages measurable: sales diversion × landlord % rent. Plus potential liquidated damages clause. Courts enforce if radius reasonable (typically 1-3 miles accepted).

Tenant pushback?

Chain tenants resist radius (limits growth). Negotiate: smaller radius, shorter term, exclusion of existing stores, exclusion for store relocations. Landlord trades down to get deal done. Lost revenue from breaches typically manageable vs no restriction at all.

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.