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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.

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$
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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.

How to Use

  1. Enter expiring lease rate, new lease rate, and market rate (all $/SF).
  2. Enter SF being re-leased.
  3. 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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