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Sales Kickout Trigger Calculator

Kickout triggers on sales thresholds. This calculator sets them.

$
%

Trigger sales per SF

$450

Natural breakpoint PSF

$600

Breakpoint multiple applied

0.75

How the math works

Natural breakpoint PSF = base rent PSF / percent rent rate. Trigger = breakpoint × multiplier.

$42 / 7% = $600/SF natural breakpoint. × 0.75 multiplier = $450/SF trigger. Below $450/SF sales, tenant can terminate.

How to Use

  1. Enter base rent PSF.
  2. Enter percent-rent rate %.
  3. Enter multiplier for natural breakpoint.
  4. Read sales-per-SF trigger threshold.

Frequently Asked Questions

How are triggers set?

Typical kickout trigger = 1.0x to 2.0x the sales level at natural breakpoint (where percent rent equals base rent). Landlord wants high trigger (tenant can't exercise). Tenant wants low trigger (protective option). Commonly land at 1.25-1.5x breakpoint.

Measurement period?

Rolling 12-24 months of sales. Landlord prefers longer measurement (avoids single-year anomalies). Tenant prefers shorter (faster escape). Kickout typically exercisable once sales below trigger for the measurement period with 60-180 day notice.

Practical use?

Retail/restaurant leases for underwritten sales not yet proven. New concepts, secondary trade areas, unproven real estate. Tenant underwrites $500/SF sales; kickout at $350/SF protects against bad site selection. Powerful but limits landlord value.

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