Rent roll
Every lease, year by year, with expiries priced in.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: rent roll.Updated 30 September 2026
What it does
The revenue build of a property, lease by lease. Each tenant pays contract rent with its bumps until its lease expires, then market rent; in the year after expiry the model charges downtime, tenant improvements and a leasing commission, each weighted by the probability that the tenant leaves. The lumpiness this produces is the point: vacancy is an event at expiry, not a smooth percentage.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Tenants, rows 6–15: Area (thousand sq ft), In-place rent, Year 1 ($ per sq ft), Lease expiry (last year of the lease), Renewal probability…
- Rent Roll, rows 6–8: Year, Market growth index (Year 1 = 1.00), Contractual bump index (Year 1 = 1.00)
- Rent Roll, rows 11–24: Tenant A: rent, Tenant A: leasing costs (tenant improvements and commissions), Tenant B: rent, Tenant B: leasing costs (tenant improvements and commissions)…
- Rent Roll, rows 27–29: Gross rental income, Leasing costs, Economic occupancy: rent over rent at full market
What a reviewer looks for
- A flat vacancy assumption that hides the years where expiries cluster.
- Tenant improvements treated as capex on a percentage of revenue.
- Market rent grown from the in-place rent rather than from market evidence.
Learn it, then build it
Vocabulary: Rent Roll, Net Operating Income (NOI).