Retail Vacancy Impact Calculator

Retail vacancy hurts NOI directly through lost rent and indirectly through co-tenancy triggers.

Vacant sq ft

Rent $/sf

Months vacant

TI $/sf

Free rent months

Broker commission %

Total impact

$443,750

Lost rent

$131,250

Lease-up cost

$312,500

How the math works

Lost rent = annual × (vacant/12). Lease-up = TI + free rent + 5-yr broker commission.

5k × $35 = $175k/yr × 9/12 = $131.25k lost. TI $225k + free $43.75k + broker $43.75k = $443.75k total impact.

How to Use

Enter vacant sq ft.
Enter rent $/sf.
Enter months vacant.
Enter ti $/sf.
Enter free rent months.
Enter broker commission %.
Read total impact.

Frequently Asked Questions

Retail vacancy economics?

Direct loss: lost rent + CAM contribution + percentage rent. Indirect: co-tenancy triggers (5–25% rent reduction across remaining tenants), retail center perception decline, longer leasing time for new tenants. Lease-up cost: TI $30–80/sf, broker commission 4–6%, free rent 2–6 months, marketing $2–10k. Time to backfill: 6–18 months typical. Anchor vacancy: most damaging — can take 18–36 months to backfill, often requires restructure of remaining tenant leases.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.