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LANDLORD DECISION ENGINE · CANADA

Renew the tenant.
Or re-lease the space.

Compare the two choices using the actual rent-change dates, vacancy, free rent, improvements, commission, landlord work and any other income or cost in the deal.

EDITABLE ILLUSTRATIVE STARTING POINT

Price the actual deal—not a generic annual average.

Every value is editable. Use the i beside a field whenever a leasing term is unfamiliar. Nothing entered here is presented as market data.

START WITH A RENT PATTERNIllustrative templates only. Your edits save automatically on this device.
iRentable area used to convert per-square-foot inputs into dollars.
SF
iCommon comparison term. Ten years equals 120 months.
MONTHS
iOwner-selected annual rate used to express future cash flows in today's dollars. It is not a mortgage rate or valuation conclusion.
%
STRATEGY A · RENEW

Keep the current occupant and enter the actual renewal economics.

iAnnual base rent per rentable square foot in lease month 1. Operating costs are handled separately.
$/SF/YR
iNumber of months when base rent is waived. The start month below lets you place the concession later in the term.
MONTHS
iLease month 1 starts at commencement. Enter 13 if the abatement begins at the start of year two.
LEASE MONTH
iCash allowance funded by the landlord for tenant improvements, entered per rentable square foot.
$/SF
iTotal landlord-funded construction or base-building work outside the TI allowance.
$
iPercentage of scheduled gross base rent paid as commission in this scenario.
% OF BASE
iFull months between the comparison date and the new lease commencement. Use zero for an immediate renewal.
MONTHS
iAnnual property operating cost per square foot that the landlord carries while the space is vacant.
$/SF/YR
BASE-RENT SCHEDULEChoose how and when rent changes.

3% at lease month 13, then every 12 months.

iChoose flat rent, a percentage increase, a fixed dollar-per-square-foot increase, or exact custom rent steps.
iThis percentage is applied once whenever the timing rule below triggers. It is not assumed to occur annually.
%
iMonth 13 means the first anniversary. Month 61 means rent stays unchanged for five full years and changes at the start of year six.
MONTH
i12 months means yearly; 24 means every two years; 60 means every five years.
MONTHS
COMMON TIMING
Custom income & costsADD MODIFIERS

Add parking income, signage revenue, management fees, inducements, capital contributions, rent guarantees or any other deal-specific cash item. Each row has its own timing.

Advanced landlord assumptions +
iAnnual property operating cost per square foot not recovered from the tenant during the lease.
$/SF/YR
iLegal, marketing, design, relocation support or other one-time landlord costs paid at commencement.
$
STRATEGY B · RE-TENANT

Model downtime, a new leasing package and the new occupant's rent.

iAnnual base rent per rentable square foot in lease month 1. Operating costs are handled separately.
$/SF/YR
iNumber of months when base rent is waived. The start month below lets you place the concession later in the term.
MONTHS
iLease month 1 starts at commencement. Enter 13 if the abatement begins at the start of year two.
LEASE MONTH
iCash allowance funded by the landlord for tenant improvements, entered per rentable square foot.
$/SF
iTotal landlord-funded construction or base-building work outside the TI allowance.
$
iPercentage of scheduled gross base rent paid as commission in this scenario.
% OF BASE
iFull months between the comparison date and the new lease commencement. Use zero for an immediate renewal.
MONTHS
iAnnual property operating cost per square foot that the landlord carries while the space is vacant.
$/SF/YR
BASE-RENT SCHEDULEChoose how and when rent changes.

3% at lease month 13, then every 12 months.

iChoose flat rent, a percentage increase, a fixed dollar-per-square-foot increase, or exact custom rent steps.
iThis percentage is applied once whenever the timing rule below triggers. It is not assumed to occur annually.
%
iMonth 13 means the first anniversary. Month 61 means rent stays unchanged for five full years and changes at the start of year six.
MONTH
i12 months means yearly; 24 means every two years; 60 means every five years.
MONTHS
COMMON TIMING
Custom income & costsADD MODIFIERS

Add parking income, signage revenue, management fees, inducements, capital contributions, rent guarantees or any other deal-specific cash item. Each row has its own timing.

Advanced landlord assumptions +
iAnnual property operating cost per square foot not recovered from the tenant during the lease.
$/SF/YR
iLegal, marketing, design, relocation support or other one-time landlord costs paid at commencement.
$
RENT-SCHEDULE CHECK

See exactly when the rent changes.

If a change is missing here, it is not in the cash flow.

Renew current tenant

Lease month 1$17.00/SF/YR

Lease month 13$17.51/SF/YR

Lease month 25$18.04/SF/YR

Lease month 37$18.58/SF/YR

Lease month 49$19.13/SF/YR

Re-tenant the space

Lease month 1$21.00/SF/YR

Lease month 13$21.63/SF/YR

Lease month 25$22.28/SF/YR

Lease month 37$22.95/SF/YR

Lease month 49$23.64/SF/YR

LANDLORD ECONOMIC READOUT

Revenue after concessions, capital, vacancy and custom items.

CAPITAL · RENEW$166,246TI + commission + work + other + vacancy carrying
CAPITAL · RE-TENANT$642,8958 entered vacancy months
PV NET CASH · RENEW$685,184Discounted entered cash-flow economics
PV NET CASH · RE-TENANT$336,365After entered vacancy and leasing costs
CUSTOM ITEMS · RENEW$0Entered custom income less custom costs
CUSTOM ITEMS · RE-TENANT$0Entered custom income less custom costs
EFFECTIVE REVENUE · RENEW$14.50/SF/YRAfter entered leasing costs and shortfall
EFFECTIVE REVENUE · RE-TENANT$9.68/SF/YRAfter entered leasing costs and shortfall
WHAT THE COMPARISON SAYS− $348,819Present-value difference: re-tenant minus renew. A positive number favours the entered re-tenant cash flow; a negative number favours the entered renewal cash flow.
  • Re-tenant the space produces CAD 288,810.64 less modelled net lease cash flow over its entered timeline than Renew current tenant.
  • Renew current tenant has the higher modelled present-value net cash flow at the entered discount rates.
  • The comparison is a proposal-economics scenario, not a valuation, rent forecast or recommendation about tenant selection.
  • The re-tenant cumulative cash flow does not stay ahead within the entered timeline.
CUMULATIVE LANDLORD CASH FLOW

See when higher rent catches the transaction cost.

Each strategy includes its own vacancy, concessions, rent timing, TI, commission, landlord work, shortfall and custom adjustments.

YEAR 1-$659,649 B − A
$14,754-$644,895
Renew current tenantRe-tenant the space
YEAR 2-$615,249 B − A
$218,874-$396,375
Renew current tenantRe-tenant the space
YEAR 3-$569,517 B − A
$429,298-$140,220
Renew current tenantRe-tenant the space
YEAR 4-$522,413 B − A
$646,214$123,801
Renew current tenantRe-tenant the space
YEAR 5-$473,896 B − A
$869,818$395,922
Renew current tenantRe-tenant the space
YEAR 6-$288,811 B − A
$869,818$581,007
Renew current tenantRe-tenant the space
RENEWAL PAYBACKMonth 12

Lease month when collected income recovers modelled leasing capital and entered costs.

RE-TENANT PAYBACKMonth 35

Measured after the entered vacancy period and from the new commencement.

CAPITAL DIFFERENCE$476,649

Upfront leasing capital plus vacancy carrying: Strategy B minus Strategy A.

MODEL BOUNDARY

Proposal economics—not a property valuation.

The engine excludes financing, income tax, terminal property value, tenant credit, default risk, unentered recoveries, market-rent forecasts and legal enforceability. Use it to isolate transaction economics, then apply the owner's actual investment, leasing and risk framework.

MODEL THE TENANT'S PROPOSAL TOO

See the economics from both sides.

Use the main lease calculator to see the tenant's full occupancy cost, then return here to test the owner's side of the same deal.

Open lease calculator →Rebuild commission & deal costs →