Complete inputs to calculate the net effective rent and net present value of a lease.
Results will appear on the right or further below if using tablet or phone.
Refer to the settings tab to adjust default settings (e.g., net vs. gross lease).
 
Lease Inputs                                
Select preferred method of entering lease information:
Input options:

Simple:
- select if entering typical lease structure with consistent time intervals between rent increases and free rent occurs at the beginning of the lease term.

Detail:
- select if entering customized lease structure with different time intervals between rent increases and free rent occurs at different points in time during the lease term.
         
                                 
  Enter lease schedule below:                          
  Description for period   Rental rate   Months in period  
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
  Add rows to complete lease schedule:      
                                       
  Enter lease information below:                      
    Starting base rent                  
    Annual rent increases (% step)
Rent increases (% step):

Rent increases are typically negotiated in lease contracts and tend to occur annually.

Refer to settings tab to change measure to $/sf/yr.
       
    Annual rent increases ($/sf)
Rent increases ($/sf/yr):

Rent increases are typically negotiated in lease contracts and tend to occur annually.

Refer to settings tab to change measure to % step.
         
    Free rent
Free rent:

Landlords will offer free rent to tenants as an incentive to enter into a lease.

Refer to settings tab to adjust components of free rent (e.g., base rent, recoveries)
                   
    Lease term                    
    Leased area                    
    Tenant improvements                
    Lease commissions (% rent)
Lease commissions (% rent):

When landlord and tenant enter into a lease, landlord typically pays a commission to the leasing brokers.

Refer to settings tab to change measure to $/sf.
         
    Lease commissions ($/sf)
Lease commissions ($/sf):

When landlord and tenant enter into a lease, landlord typically pays a commission to the leasing brokers.

Refer to settings tab to change measure to % rent.
         
                                       
Other Inputs                                
  Enter your property's annual operating costs      
  Enter your project annual inflation rate          
  Enter your discount rate                
                                       
Lease Start Date                              
Would you like to enter a lease start date?                    
 
  Year                
  Month                
  Day                
                                       
Tenant Improvements & Lease Commissions        
Would you like to adjust the timing of tenant improvements and lease commissions?
 
Tenant improvements ("TI"):                          
  Project start date (# mths prior to lease start)
Project start date:

For example, enter 6 if the tenant improvement project starts 6 months prior to the lease start date.
   
  Project timeline (# mths to complete)
Project timeline:

For example, enter 4 if the project will take 4 months to complete.

Note, analysis assumes that the project completion schedule is smoothed in equal increments during the time frame selected.
       
Lease commissions ("LC"):                            
  First payment date (# mths prior to lease start)
First payment date:

For example, enter 6 if the first payment occurs 6 months prior to the lease start date.
   
  Number of payments to cover total LC
Number of payments:

For example, enter 2 if the total number of payments to cover the lease commission expense is equal to 2.
       
  Number of months between payments
Number of month between payments:

For example, enter 12 if the gap between payments is equal to 12 months.
       
                                       
Debt Financing                              
Will you be financing the lease deal with debt?                
 
  Enter terms of the debt below:                      
  % of tenant improvements funded with debt
Percent of TI funded with debt:

Enter the percentage of the total tenant improvement expense that will be paid with debt.
   
    % of lease commissions funded with debt
Percent of LC funded with debt:

Enter the percentage of the total lease commission expense that will be paid with debt.
   
    Debt maturity date:                          
      Year                    
    Month                    
    Average interest rate                
    Amortization period                
Does your loan have an interest-only period?
 
  Enter interest-only period expiration date below:                
  Year                
  Month                
                           
            $/sf/year Total
Rent
Net Effective Rent
            Unlevered Levered
IRR
                           
  Period Start Date End Date Months Description Area Base Rent
sf $/sf/yr $/sf/mo $/period $/mo
                                   
  Settings                            
 
Lease type:

Net: tenant is responsible for paying base rent plus proportionate share of operating costs.

Gross: tenant is responsible for paying base rent and proportionate share of increases in operating costs over its base year amount. Lease type
 
Rent increases:

Contractual increases to the base rent that occur during the lease term. Rent increases
 
Lease commissions:

Commission paid to the leasing broker(s) by the landlord as remuneration for help negotiating a lease with a prospective tenant. Lease commissions
 
 
 
 
Free rent:

Landlord may offer free rent to incentivize a prospective tenant to sign a lease. The lease will state whether the free rent offered will include base rent and expense recoveries. For clarity, during a free rent period, the tenant does not pay any rent to the landlord. Free rent