TENANT FLEXIBILITY & SURPLUS SPACE · CANADAThe lease remains.
The lease remains.
What is the least-cost path?
Carry the premises, recover part of the obligation through a sublease, or price a negotiated surrender—on one remaining monthly horizon with every assumption visible.
EDITABLE ILLUSTRATIVE STARTING POINT
Model the obligation that remains.
Every starting value is an editable scenario—not a market estimate, legal conclusion or landlord offer. Build from the current executed lease and actual exit discussions.
What the tenant still owes
Contract base rent, additional rent, recurring costs, expiry work and a deliberately entered deposit recovery.
Recovery after downtime
Head-lease liability remains. Recovery begins only after the entered downtime and ends no later than head-lease expiry.
Transaction costs and profit share +
Price the entered release proposal
This is a cash-flow scenario only. The tool never assumes the landlord will accept a surrender or release any party.
ENTERED SCENARIO READOUT
Compare what leaves the business.
LOWEST PRESENT-VALUE SCENARIO ENTEREDNegotiated surrenderThis is arithmetic on the entered scenarios—not a recommendation, forecast or conclusion that the option is legally available.
- Remaining head-lease obligation: $2,113,722
- Sublease recovery: $1,479,304 (70.0%)
- Sublease transaction costs: $229,826
- Landlord profit share: $0
NEGOTIATION THRESHOLDS
Know what has to be true.
The break-even tests recalculate the complete monthly scenario while holding every other entered term constant.
Present-value sublease cost equals the entered surrender scenario.
Last whole downtime month where sublease remains no more expensive than surrender.
3 total prompts still require document and adviser review.
YEAR-BY-YEAR EXIT HORIZON
Watch the recovery gap move.
Bars show nominal cash cost by remaining lease year. A surrender can concentrate cost early while sublease recovery depends on downtime and the collection scenario.
MONTHLY EVIDENCE SCHEDULE
Trace liability and recovery.
The exported CSV includes every remaining month. This view keeps the first 24 months visible for rapid review.
MonthHead leaseSublease recoveryProfit shareSublease netSurrender
12026-10-01$42,125$0$0$271,951$42,125
22026-11-01$42,125$0$0$42,125$42,125
32026-12-01$42,125$0$0$42,125$42,125
42027-01-01$42,125$0$0$42,125$507,125
52027-02-01$42,125$0$0$42,125$0
62027-03-01$42,125$0$0$42,125$0
72027-04-01$42,125$11,756$0$30,369$0
82027-05-01$42,125$11,756$0$30,369$0
92027-06-01$42,125$35,269$0$6,856$0
102027-07-01$42,125$35,269$0$6,856$0
112027-08-01$42,125$35,269$0$6,856$0
122027-09-01$42,125$35,269$0$6,856$0
132027-10-01$43,374$35,269$0$8,105$0
142027-11-01$43,374$35,269$0$8,105$0
152027-12-01$43,374$35,269$0$8,105$0
162028-01-01$43,374$35,269$0$8,105$0
172028-02-01$43,374$35,269$0$8,105$0
182028-03-01$43,374$35,269$0$8,105$0
192028-04-01$43,374$36,092$0$7,282$0
202028-05-01$43,374$36,092$0$7,282$0
212028-06-01$43,374$36,092$0$7,282$0
222028-07-01$43,374$36,092$0$7,282$0
232028-08-01$43,374$36,092$0$7,282$0
242028-09-01$43,374$36,092$0$7,282$0
EXIT EVIDENCE QUEUE
Resolve what the model cannot know.
These are modelling and documentation prompts—not findings about consent, liability, enforceability or marketability.
The entered collection factor is a sensitivity assumption, not a credit assessment or default forecast.
Verify the deposit amount, permitted deductions, release conditions and timing against the source documents.
The entered sublease base recovery does not exceed head base rent after free rent and collection assumptions.
MODEL BOUNDARY
Exit economics are not an exit right.
- Every head-lease, sublease and surrender term is user-entered and unverified.
- The head tenant is assumed to remain liable for every modelled head-lease payment unless the entered surrender scenario becomes effective.
- Sublease recovery is a cash-flow scenario, not a forecast of market rent, downtime, collection or consent.
- Assignment, landlord release, mitigation, indemnities, guarantees, default remedies and insolvency effects are not inferred.
- GST/HST, income tax, accounting classification and transaction-specific legal effects are excluded.
- A recoverable deposit is treated as a future credit only when the user enters it; recovery is not guaranteed.
BUILD THE EXIT FILE
Read the lease-exit guide →Know the consent, liability and evidence path.
Use the Canadian guide to connect assignment and subletting language, landlord consent, subtenant diligence, restoration and the surrender agreement to the economics.