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Sales to Rent Ratio Calculator

Sales-to-rent ratio = tenant annual sales ÷ annual rent. Healthy retail is 10-20x. Declining ratio signals sales trouble. This calculator computes and benchmarks the metric.

$
$

Sales-to-rent ratio

12

sales ÷ rent

Occupancy cost ratio

8.33%

Rent per sales $

$0.083

How the math works

Sales-to-rent ratio is the single fastest retail tenant health check. If a tenant's ratio halves over 3 years, they're in trouble regardless of how well the center's doing.

Landlords with co-tenancy clauses or percentage-rent agreements get this data monthly. Smart LLs use it to steer renewal negotiations and tenant replacement decisions.

How to Use

  1. Enter tenant annual sales.
  2. Enter annual base rent + NNN.
  3. Read sales-to-rent ratio.

Frequently Asked Questions

What is healthy?

QSR restaurants: 12-20x. Casual dining: 8-15x. Specialty retail: 10-18x. Grocery: 15-30x (thin margins, high turnover). Under 8x across most categories = stressed tenant.

How does it differ from OC ratio?

OC ratio = rent ÷ sales (as percent). Sales-to-rent ratio is the inverse. Same information, different presentation — brokers use one, lenders the other.

Why track over time?

Declining ratio means sales growth lagging rent growth. Rent escalators + flat sales = stressed tenant within 2-3 years. Early warning enables proactive renegotiation or replacement.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.

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