lease-trade-out-analyzer

Lease renewal vs. trade-out NPV comparison is done by computing the net present value, breakeven point, and risk-adjusted outcomes for both scenarios using inputs like current rent, market rent, vacancy months, and carrying costs. The model outputs a final recommendation on the optimal path.

Risk-adjusted lease renewal vs. trade-out decisions require inputs including property type, space square footage, current and market rent per square foot, remaining lease term, tenant credit quality, submarket vacancy rate, and discount rate to compute accurate NPV comparisons.

Co-tenancy clauses and ROFO rights should be considered in a lease trade-out analysis when the tenant is an anchor or driver of foot traffic. The model evaluates these optional portfolio impact considerations alongside standard NPV and breakeven comparisons.

Expected vacancy and carrying cost directly impact the lease trade-out breakeven point by increasing the total cost of replacing a tenant. The analysis uses expected vacancy months, make ready cost per square foot, and monthly carrying costs to determine the threshold where the trade-out decision flips.

Sensitivity tables can identify the rent, vacancy, and tenant improvement (TI) thresholds where a lease renewal decision flips to a trade-out. The analysis generates these tables alongside NPV and breakeven comparisons to reveal decision-changing variables.

DSCR covenant and disposition refi timeline impact the lease renewal NPV comparison by influencing the risk-adjusted outcomes and financial constraints over the hold period. These inputs are factored into the analysis alongside the discount rate and current DSCR to determine the optimal path.