Right Of First Refusal Value Calculator

ROFR gives tenant preemption option.

Adjacent space value

Expected discount %

Trigger probability %

ROFR value

$240,000

Discount amount

$800,000

Value if triggered

$800,000

How the math works

Discount = value × %. Expected value if triggered = discount. ROFR value = discount × trigger probability.

$8M × 10% = $800k discount. × 30% trigger = $240k ROFR value — moderate tenant benefit.

How to Use

Enter adjacent space value.
Enter expected discount %.
Enter probability of trigger %.
Read ROFR value.

Frequently Asked Questions

ROFR mechanics?

Landlord must offer tenant first opportunity to match any third-party offer on adjacent space (or full property sale). Tenant has 30-90 day election period. If tenant matches, tenant closes at same price. If declines, landlord sells to third party.

Value to tenant?

Prevents unwanted neighbor. Locks in ability to expand. Protects from surprise sale. Value: probabilistic — depends on likelihood trigger occurs + discount tenant can negotiate. Typical value 5-20% of adjacent space value.

Cost to landlord?

Delays third-party sale 30-90 days. Deters some buyers (they don't want to lose deal to tenant). Slight discount typical to move deal. Value-destruction 2-10% of sale price if ROFR triggered. Balance negotiation point.