Here is a quick and easy way to use the LeaseMatrix Difference Comparison Report to analyze a sublease proposal against any remaining lease obligation.
Let’s look at an example.
Below, we have a report which compares a lease with 4 more years remaining. The average rent through the remaining term of the current lease obligation is 36.61 and the potential sublessee has offered to pay $32.50. The report below outlines the gross dollar figures of the Sublease Proposal (left) next to Remaining Lease Obligation (right).
Then, in order to determine the Cost Recovery of this sublease proposal, click the “Difference” button on the top navigation menu, like so:
Then, set the Sublease Proposal as the “Benchmark” to be analyzed. Once this is set, red numbers represent the cost shortfall or the remaining “unrecovered” costs from this sublease proposal and green numbers represent any revenue above the current lease obligation.
Please note! In order to analyze the exact cost recovery amounts, you will need to set the Commencement dates of both leases to the date which the sublease will actually start.