Tenant Replacement Calculator
Estimate the cost of tenant turnover to make informed decisions about lease renewals and negotiations. The calculator compares the cost of replacing a tenant against renewing them, using lease terms and expenses you can adjust for your specific tenant and market.
⚠️ Disclaimer: The tenant replacement calculator is intended for educational purposes only. Actual costs are subject to market fluctuations and depend on location, market conditions, and specific lease terms. Estimates are based on market averages and your inputs, and may not include other fees and costs.
Basic calculation
The estimated cost of tenant turnover starts from three inputs:
| Input | Description | Default |
|---|---|---|
| Space size | Total square footage occupied by the tenant (editable on the company record if missing) | — |
| Effective rent | Average rent per square foot. Rent per month = rent per sq ft × (square feet ÷ 12) | $70.00 |
| Downtime | Estimated vacancy duration between tenants; contributes vacancy loss (rent per month × downtime) to the Replace total | 9 months |
Adjust these to reflect your lease terms and market conditions, then review the estimated basic cost of turnover.
Advanced calculation
Advanced mode adds per-scenario (Renew vs. Replace) expense inputs:
| Expense | How it's calculated | Renew default | Replace default |
|---|---|---|---|
| Lease term | Duration of the lease agreement | 84 months | 84 months |
| Broker commissions (%) | % × total rent obligation | 4% | 6% |
| Broker commissions ($) | ($ rate × space size) × lease term in years | $2.25 | $2.75 |
| TI allowance | $ per sq ft × square feet — budget to improve or customize the space | $100.00 | $175.00 |
| Marketing costs | $ per sq ft × square feet — advertising the available space | $0.00 | $1.00 |
| Landlord work | $ per sq ft × square feet — repairs, maintenance, improvements | $2.00 | $4.00 |
| Legal fees | $ per sq ft × square feet — lease drafting, negotiation, disputes | $2.00 | $6.00 |
| Other expenses | Custom labeled line items — click Other to label, adjust Renew/Replace values, click Add for more | — | — |
How the totals work
- Total rent obligation = (effective rent × space size) × lease term in years
- Total cost (Renew or Replace) = vacancy loss total + all expenses for that scenario
- Estimated cost of tenant turnover = total cost for Replace − total cost for Renew
Analyzing results
Compare the total costs of each scenario — including broker commissions, TI allowances, and marketing — and weigh the financial difference alongside strategic considerations (tenant quality, market demand, relationship value) when deciding between renewal and replacement.