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).

 

Sublease Proposal to Lease Obligation Report

Sublease Proposal to Lease Obligation Report (Click image for live report)

 

Then, in order to determine the Cost Recovery of this sublease proposal, click the “Difference” button on the top navigation menu, like so:

Click the "Difference" button on the Navbar

Click the “Difference” button on the Navbar

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.

Cost Recovery Report

Cost Recovery Report (Click image for live report)

 

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.

Share →

Lease vs Buy Analysis Template

This Excel model allows anyone to compare leasing vs owning office, retail or industrial space. Proven to be simple and easy to use, this template has underwritten billions of dollars of transactions.

Leave a Reply