Tenant Retention Package Calculator

Retaining a tenant beats re-tenanting when package < turnover cost.

Existing annual rent

Renewal annual rent

Retention package cost

Renewal term years

Turnover cost if lost

Retention success probability %

Net retention savings

$480,000

Package gross PV

$280,000

Expected turnover avoided

$760,000

How the math works

Package PV = cost + rent reduction over term. Expected turnover avoided = turnover × probability. Savings = avoided − package.

$20k rent drop × 5 yrs + $180k package = $280k total. $950k × 80% = $760k avoided. Net $480k savings — strong retention economics.

How to Use

Enter existing rent.
Enter renewal rent.
Enter retention TI/concession.
Enter renewal term years.
Enter turnover cost if lost.
Enter retention probability %.
Read package NPV vs turnover.

Frequently Asked Questions

Why retain?

Retaining an existing tenant avoids downtime, full TI, leasing commission, and re-broker fees. Cost of retention (modest TI, small renewal LC, mild rent concession) typically runs 30-60% of full turnover cost. Retention is virtually always the financial winner.

What packages work?

Small refresh TI ($5-25/SF), lease extension for reduced years-1-2 rent, amenity upgrades allocated, signage rights, early termination flex. Must be cheaper than full turnover by ~40%+ to justify vs market test; often much cheaper.

When to walk?

Tenant credit deteriorated, space no longer fits market demand, conversion to different use has higher NPV, or tenant demands exceed retention economics (e.g., 25% rent reduction plus $100/SF TI). Sometimes letting them leave and releasing is better.