ROFR Valuation Calculator

ROFR has optionality value. This calculator quantifies.

Expansion SF

Market rent/SF

Tenant growth probability %

Relocation cost avoided

ROFR value

$127,620

Expected rent premium avoided

$5,040

Expected relocation value

$112,500

How the math works

ROFR value ~ probability × (relocation savings + 3-year rent premium avoided).

On 8,000 SF adjacent at 45% growth probability with $250k relocation avoided: ~$125k relocation value + $34k rent premium value = $159k expected value. Tenant pays for ROFR via lease concessions; landlord negotiates tight scope to minimize its impact on leasing flexibility.

How to Use

Enter expansion SF.
Enter market rent/SF.
Enter tenant growth probability %.
Enter relocation cost avoided.
Read ROFR option value.

Frequently Asked Questions

ROFR vs ROFO?

ROFR (Right of First Refusal): landlord must present any 3rd-party offer to tenant who can match. ROFO (Right of First Offer): landlord must offer to tenant first before 3rd party. ROFR cleaner for tenant; ROFO more landlord friendly (landlord controls pricing).

When valuable?

Tenant plans to grow. Adjacent space is desirable. Market is tight. Relocation cost would be high. ROFR avoids bidding war and preserves tenant's operational continuity. Can be worth 10-30% of fit-out cost avoided × growth probability.

Landlord concern?

ROFR limits landlord's leasing flexibility. 3rd party may walk if deal conditional on ROFR clearance. Often negotiated with 7-15 day response window (tenant must decide fast). Landlord minimizes ROFR scope — specific adjacent spaces, not whole floor.