Finance category
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Rent Spread Calculator
Rent spread compares expiring lease rate to new (renewal or replacement) rate, expressed as a percentage change. Public industrial and multifamily REITs report cash and straight-line rent spreads quarterly as a leading indicator of NOI growth. This calculator computes the spread, incremental NOI, and market rent capture so operators can benchmark leasing performance.
Cash rent spread %
25.93%
Spread / SF
$7.00
Incremental annual NOI
$35,000
Market rent capture %
106.25%
100% = at market
How the math works
Rent spread is the percentage change between expiring lease rate and the new (renewal or replacement) rate. Industrial REITs report spreads quarterly — positive spreads (15-30% in 2022 industrial cycle) signal strong fundamentals and net effective rent growth.
Cash spread vs straight-line spread differ for stepped rents — straight-line averages future bumps, cash uses year-1. Use cash for cap rate and current NOI; straight-line for GAAP.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
How this calculator works
What this page estimates
This Rent Spread Calculator is built to give a quick, browser-based estimate for rent spread. Rent spread compares expiring lease rate to new (renewal or replacement) rate, expressed as a percentage change. Public industrial and multifamily REITs report cash and straight-line rent spreads quarterly as a leading indicator of NOI growth. This calculator computes the spread, incremental NOI, and market rent capture so operators can benchmark leasing performance. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.
Calculation approach
The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.
Example workflow
For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.
Practical checks
- Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
- Run a low, base, and high case when the inputs are estimates.
- Check the related calculators below when the next decision depends on a different assumption.
How to interpret the rent spread result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this rent spread estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter expiring lease rate, new lease rate, and market rate (all $/SF).
- Enter SF being re-leased.
- Read cash spread %, $/SF spread, incremental NOI, and market capture %.
Frequently Asked Questions
Cash vs straight-line spread?
Cash uses year-1 rent only; straight-line averages all future steps. GAAP reporting uses straight-line; cap rate underwriting typically uses cash.
Reasonable spread benchmarks?
Industrial 15-25% (2021-2024 cycle); multifamily 5-10%; office often negative (-5 to -15%) in soft markets; retail varies widely.
Why include market capture?
Lets you see how close new lease is to true market — a 100% capture means lease was struck at market; below 100% means you left value on the table.
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