CRE Lease Analysis Tool - Landlord          
  Quickly calculate net effective rent and net present value.  
  Review the rent schedule and calculations on the other pages.  
                                         
  Settings:                                    
    Lease type              
   
    Rent increase            
     
    Leasing commissions          
     
                                           
  Lease inputs:              
   
    Rental rate ($/sf)   # months   Leased area (sf)    
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
                                   
    Starting base rent             $/sf  
Starting base rent:

Enter the rental rate that will be charged to the tenant at the beginning of the lease.
 
   
      %  
Rent increase:

Enter the rent increase which is an adjustment made to the rental rate. In some cases, the lease has a built-in provision that allows for periodic rent adjustments.
 
   
      $/sf  
Rent increase:

Enter the rent increase which is an adjustment made to the rental rate. In some cases, the lease has a built-in provision that allows for periodic rent adjustments.
 
    Lease term (max 300 months)       mo      
    Leased area                 sf      
    Tenant improvements           $/sf  
Tenant improvements:

Enter the amount of tenant improvements (TIs) that the landlord is responsible for covering. TIs refer to any modifications, alterations, or improvements made to a property by a tenant to suit their specific needs.
 
    Leasing commissions             %  
Leasing commissions:

Enter the leasing commissions (LCs) paid to the brokers for successfully securing a tenant for a property.
 
    Leasing commissions             $/sf  
Leasing commissions:

Enter the leasing commissions (LCs) paid to the brokers for successfully securing a tenant for a property.
 
    Start date (m/d/y) | |    
                                           
  Free rent:       # months   % month   Month of    
      free rent   in free rent   lease term    
  | |
Free rent:

For each row, enter the following:
- number of months of free rent
- percentage of days in each month covered by the free rent period (default set to 100% of days per month).
- month in the lease term when the free rent period begins.
 
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    Components of free rent:          
  Base rent    
                         
  Rent increase    
                         
  Expense recoveries    
                         
  Parking income    
                                           
  Expenses:       Property   Base year   Annual    
      ($/sf)   ($/sf)   % increase    
  | | |
Expenses (gross lease):

For each row, enter the following:
- name of expense or expense group
- property expense amount ($/sf) paid by the landlord
- base year amount ($/sf)
- annual percentage increase for the expense or expense group
 
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  Non-recoverable | |         |    
                     
  Expenses:       Landlord   Tenant   Annual    
      ($/sf)   ($/sf)   % increase    
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Expenses (net lease):

For each row, enter the following:
- name of expense or expense group
- expense amount ($/sf) paid by the landlord
- expense amount ($/sf) paid by the tenant
- annual percentage increase for the expense or expense group
 
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  Non-recoverable | |         |    
                     
                                           
  Parking income:                  
   
  Type of stall   # stalls   Mthly rate ($/stall)    
           
           
           
           
           
             
                                         
  Other inputs:                    
   
    Discount rate               %  
Discount rate:

Enter the discount rate in order to calculate the net present value, a measure to assess the profitability of a lease. The discount rate represents the rate of return required by an investor.
 
    Tenant name                      
    Suite number                      
    Floor number                      
  Building name / address                  
                                         
                                         
                                         
                                         
                                         
                                         
                                         
                                         
              $/sf/yr $ total
Net effective rent = total rent during the lease term + rent increases - free rent - operating expenses - tenant improvements - leasing commissions NER
Net present value (NPV):

Measures the profitability of a lease by comparing the present value of expected future cash flows to the initial costs. A lease is attractive when it has a positive NPV.
Base Rent
Free Rent
TIs
LCs
                                 
                     
  Rent Schedule
  Period Start Date End Date Lease Term Free Rent Area Base Rent
        mos mos sf $/sf/yr $/sf/mo $/period $/mo
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                   
                   
                   
                   
                   
                             
  Calculations  
 
  Year Start date End date Area Base rent Free rent Recoveries Parking Expenses NOI TIs LCs NER  
         
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
  Year Start date End date Area Base rent Free rent Recoveries Parking Expenses NOI TIs LCs NER