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Renewal Notice Window Cost Calculator

Missing a renewal notice window forfeits option economics.

%
$

Value at risk

$450,000

Annual penalty

$90,000

Total renewal value

$3,000,000

How the math works

Value at risk = market rent × discount × renewal years.

$600k × 15% × 5 = $450k value forfeit if notice missed.

How to Use

  1. Enter renewal option rent discount %.
  2. Enter current market rent annual.
  3. Enter renewal term years.
  4. Read renewal value at risk.

Frequently Asked Questions

Notice timing?

Typical: 9-18 months before current lease expiration. Longer notice protects landlord's re-leasing window. Shorter notice protects tenant flexibility. Missing the window typically forfeits the option — rent resets to market without discount.

Tenant consequences?

Forfeit negotiated below-market renewal rate. Lose favorable TI allowance. Lose option to extend at discounted rent. Landlord may demand market terms or even refuse renewal. Large tenants often maintain calendar reminders 2 years in advance.

Landlord perspective?

Receives windfall when tenant misses window. Can re-market space competitively or demand higher rent. Institutional landlords sometimes send courtesy reminders — good will vs legal obligation. Small landlords often stay silent.

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