Shopping Centre Leasing: Base Rent, Turnover Rent & Breakpoints, Service Charge Recoveries, Occupancy Cost Ratios & Centre NOI

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Read a fictional centre's rent roll, total the contracted base rent of the let units, measure occupancy by area, the anchors' share of the let space and the area-weighted rent of the line shops.
• Compute natural breakpoints, the turnover rent each tenant pays on top of its base rent under natural and fixed breakpoints, and the centre's total turnover income.
• Turn tenant sales reports into sales densities by unit and category, measure the centre's like-for-like trend and find the weakest units with SMALL and INDEX/MATCH.
• Calculate each tenant's occupancy cost ratio, sort the tenants into fictional affordability bands with IFS, compute the pooled ratio of the mall and highlight the stretched tenants.
• Apportion a fictional service charge budget: fixed anchor contributions, a pool rate per m² for the line shops, caps for two tenants, and the shortfall the landlord pays for vacancy and caps.
• Model the first year after a unit falls empty: downtime, rent-free months and lost rent, then the net effective rent of each new deal after rent-free and the landlord's fit-out contribution.
• Build the centre's net operating income from rent, turnover rent, recoveries and mall income, express it per m², capitalise it at a fictional yield and test how much value a small yield move costs.
• Compare three options for the centre's two weakest units: stabilised NOI, value at the yield and the net gain after capex and lost rent, chart the new tenant mix and recommend an option.