Owner tool
Lease Economics Calculator
Put a long-term federal lease next to a conventional one over the same holding period. The comparison accounts for what usually gets left out: tenant improvements amortized into federal rent, re-leasing downtime, free rent, commissions, and credit loss. Everything is calculated in your browser.
Assumptions
Federal lease
Conventional lease
Federal lease
$10.00M
Net present value
- Total net cash flow
- $22.40M
- Average per year
- $1.12M
- Up-front TI capital
- $2.60M
- Vacancy over horizon
- 0 mos
TI funded up front, then amortized back into rent over the 10-year firm term.
Conventional lease
$5.62M
Net present value
- Total net cash flow
- $14.69M
- Average per year
- $735K
- Up-front TI capital
- $1.80M
- Vacancy over horizon
- 12 mos
Re-leased every 7 years with new TI, free rent, and commissions.
The difference
+$4.38M
Present value of the federal scenario above the conventional one over 20 years, discounted at 8%. Undiscounted, the gap is $7.70M in favor of the federal lease.
Year by year
Net cash flow to ownership
This model is a simplified screening tool for comparison purposes only. It does not account for financing structure, tax treatment, capital reserves, or the specific terms of any solicitation, and it is not investment, tax, or legal advice. Federal rent structures vary by requirement and award decisions rest with the government.