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Tenant Exclusive Use Cost Calculator

Exclusivity restricts landlord leasing options.

$
SF
%

Opportunity cost value

$2,692,308

Annual lost rent

$175,000

Total lost rent

$1,400,000

How the math works

Annual lost = market rent × SF. Total = annual × years. Opportunity value = annual / cap.

$35 × 5,000 = $175k/yr lost. × 8 = $1.4M total. At 6.5% = $2.69M opportunity cost — material concession.

How to Use

  1. Enter other tenant market rent PSF.
  2. Enter lost SF from exclusivity.
  3. Enter years remaining.
  4. Enter cap rate.
  5. Read opportunity cost.

Frequently Asked Questions

Exclusive use?

Landlord grants tenant sole right to operate a specific use category in the property or radius. E.g., only coffee shop, only gym. Prevents landlord from leasing to another fitness chain or coffee operator. Limits landlord's leasing flexibility.

Value to tenant?

Protects from in-center competition. Stabilizes sales. Strong tenants demand for category-defining stores. Coffee, fitness, dry cleaning, nail/hair salons — each benefits. Landlord often grants as incentive to sign anchor-type tenant.

Cost to landlord?

Lost leasing opportunity. If best replacement is in protected category, landlord lease to second-tier tenant at lower rent. Cost measured by foregone rent. Major retail centers: $1-3M+ opportunity cost over lease term.

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