Termination Fee Buyout Calculator

Termination buyout payments close the lease. This calculator sizes a fair number.

Remaining months

Monthly rent

Unamortized TI & free rent

Landlord downtime months

Re-lease ramp rent %

Fair buyout

$1,270,000

Downtime cost

$500,000

Ramp discount

$250,000

How the math works

Fair buyout = unamortized TI/free rent + downtime cost + re-lease ramp discount.

Buyout negotiations settle in the middle of the two parties' math. Tenants anchor on full obligation minus optimistic sublease recovery; landlords anchor on unamortized costs plus conservative re-lease. Starting the conversation with this explicit breakdown leads to faster settlements.

How to Use

Enter remaining months.
Enter monthly rent.
Enter unamortized TI/free rent.
Enter landlord downtime months.
Enter re-lease ramp rent %.
Read fair buyout.

Frequently Asked Questions

How is buyout priced?

Typical formula: unamortized TI/free rent + landlord expected downtime cost + re-lease ramp discount + retreat/legal costs. Office: 6-12 months rent. Industrial: 3-8 months rent. Retail: 12-24 months for national credit tenants.

Who has leverage?

Landlord leverage: tight market, strong tenant credit, long remaining term, broker commissions already paid. Tenant leverage: distressed market, weak credit, short remaining term, landlord cash flow pressure. Negotiation blends both.

Amortization catchup?

If TIs, commissions, and free rent were amortized over original term, termination triggers clawback of unamortized balance. On a $40/sf TI package with 3 years remaining out of 10, that's $28/sf or $700k on 25k sf unamortized.