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Rent Roll Mark To Market Gap Calculator

In-place vs market gap drives value-add returns.

SF
$
$
%

Mark-to-market value uplift

$15,384,615

Annual rent gap

$1,000,000

Average roll year

2

How the math works

Annual gap = SF × (market − in-place). Value uplift = gap / cap rate. Average roll year ≈ WALE / 2.

125,000 SF × $8/SF gap = $1M annual. At 6.5% cap = $15.4M upside — captured over ~2 years on average. Classic value-add thesis math.

How to Use

  1. Enter total rentable SF.
  2. Enter average in-place rent PSF.
  3. Enter market rent PSF.
  4. Enter average remaining term years.
  5. Enter cap rate %.
  6. Read mark-to-market upside.

Frequently Asked Questions

What is mark-to-market?

Revenue upside captured as in-place leases expire and renew at current market rents. Common business plan for value-add office, retail, and industrial where long-dated leases signed at lower rents trail today's market. Drives Year-3 to Year-7 NOI growth.

How to estimate the gap?

Pull rent roll; compute weighted average in-place PSF. Survey comparable new leases signed in last 12-18 months for market PSF. Gap × SF = annual uplift at full roll. Weighted by lease expiration schedule gives timing.

Risks?

Market softens before rollover. Tenant downsizes or exits at renewal. TI/LC required to capture uplift. Concessions (free rent) erode face rent gain. Underwrite haircuts for renewal probability, downtime, and net effective rent drag.

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