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CREbuilder

Task guide

Model rent escalations and reimbursements

Model fixed bumps, step-ups, and expense recoveries per tenant so every projected year matches the lease.

5 to 15 minutes per complex leaseFor brokers and analysts building a commercial multi-year cash flowAdvancedLast verified October 5, 2026

Outcome

Each tenant's rent and recoveries follow its lease in every projected year.

Navigation path

Document wizard > Rent Roll > Edit Tenant > Rent Increases and Reimbursements

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Full Financials with Multi-Year Cash Flow

On this page

Before you start

Data, sources, and access to prepare

  • A Unit-by-Unit Multi-Year Cash Flow rent roll
  • Current annual rent
  • Lease escalation and recovery terms

Choose the growth method

Rent growth decision

Use one annual rate for repeating bumps or a schedule for lease-specific changes.

  • Read lease termsAnnual increaseRepeating
  • Read lease termsCustom scheduleIrregular
  • Annual increasePreview
  • Custom schedulePreview

Increase by percent

Effect in selected analysis year
Prior annual rent x (1 + percent)
Later years
New amount remains the base until another step

Set annual rent

Effect in selected analysis year
Replaces annual rent with the entered dollar amount
Later years
Replacement amount remains until another step

Annualize reimbursements

How to enter common recovery structures. Reimbursements are amounts you enter per tenant; CREBuilder does not derive them from operating expenses, so update them when expenses change.
Lease structureWhat to enter in Reimbursements
NNN with pro-rata shareTenant share of recoverable expenses (tenant SF / building SF x recoverable expenses), entered as an Annual amount or divided by tenant SF as SF/Yr
Base-year or expense-stop (office)(Current recoverable expenses - base-year expenses or stop) x tenant share, as an Annual amount. Enter 0 when expenses are below the stop.
Modified GrossOnly the expenses the tenant pays back, using the same pro-rata math
Full Service Gross0. The landlord pays operating expenses out of base rent.

Reimbursement Amount Optional

Expense recovery paid by the tenant.

Format
Nonnegative currency amount
Units
Currency in the selected reimbursement basis
Save behavior
Saved with the tenant drawer when Save Changes succeeds.
Downstream effect
Combines with the selected basis and tenant area to calculate annual reimbursement.

Reimbursement Basis Recommended

SF/Yr, SF/Mo, Annual, or Monthly. A blank legacy value is legal but uses a different fallback by column.

Format
Select one supported basis; do not leave it blank when reviewing or editing a tenant
Units
Not applicable
Save behavior
Saved with the tenant drawer when Save Changes succeeds. If a legacy in-place basis is blank, the calculation falls back to SF/Yr. If a legacy pro forma basis is blank, it falls back to Annual.
Downstream effect
Determines whether the amount is multiplied by area, by 12 months, by both, or neither. The asymmetric blank fallback can change annual reimbursement materially, so select and verify both columns explicitly.

Reimbursement Growth Optional

Annual growth applied in cash-flow years.

Format
Percentage
Units
Percent per projected year
Save behavior
Saved with the tenant drawer when Save Changes succeeds.
Downstream effect
Compounds annual tenant reimbursement after In-Place in Multi-Year Cash Flow.

Required means the field is needed to complete or support this workflow. Some screens allow a draft to save before every required item is complete. The steps and troubleshooting call out controls the product actively blocks.

Enter and verify the lease terms

Escalation and recovery steps

  1. 1

    Open the tenant

    Rent Roll, tenant row

    Select Edit for the tenant.

    Expected result: The current annual rent and growth controls are visible.

    If this step does not work

    Confirm the rent-roll projection is Multi-Year Cash Flow if the controls are missing.

    Rent Roll workspace showing tenant escalation and reimbursement inputs in context.
    Configure rent growth and reimbursement terms, including the different blank-basis defaults for in-place and pro forma columns.
  2. 2

    Choose Annual or Custom

    Tenant detail, Rent Increases

    Use Annual for the same percentage every year or Custom for year-specific changes.

    Expected result: The matching rate or schedule editor appears.

    If this step does not work

    Re-read the lease abstract if the change dates or amounts are uncertain.

  3. 3

    Add complete custom steps

    Custom escalation editor

    Complete each change row with analysis Year N and either a percent or replacement annual amount.

    Expected result: The preview sorts the steps and shows projected annual rent.

    If this step does not work

    Complete both the year and value. Remove partial rows before saving.

  4. 4

    Review amount warnings

    Custom escalation editor

    If a replacement amount is far below current annual rent, verify that a monthly figure was not entered as annual.

    Expected result: The replacement reflects the intended annual figure.

    If this step does not work

    Use the offered x12 correction only when it matches the lease source. Legitimate reductions may remain.

  5. 5

    Enter reimbursement terms

    Tenant detail, Reimbursements

    Complete the reimbursement fields with recovery amount, basis, and applicable growth. For legacy blank bases, remember that in-place falls back to SF/Yr while pro forma falls back to Annual.

    Expected result: The annual reimbursement calculates from the explicitly selected basis.

    If this step does not work

    Check area and basis first if the result is off by 12 or by the tenant SF. Do not assume the two blank-column fallbacks match.

  6. 6

    Save the tenant schedule

    Tenant drawer > Save Changes

    Select Save Changes.

    Expected result: The tenant drawer closes or reports a saved state.

    If this step does not work

    Keep the drawer open while a save is processing.

  7. 7

    Inspect the projection

    Valuation > Cash Flow Projection

    Review projected rent and reimbursement rows by year.

    Expected result: Each year follows the lease schedule.

    If this step does not work

    Return to the tenant schedule and correct the first year where the preview diverges.

Avoid projection mistakes

A custom step is ignored

Likely cause: The year or value is incomplete or invalid.

  1. Enter a whole analysis year of 1 or greater.
  2. Enter a finite percent or a nonnegative annual amount.
  3. Save and inspect the preview again.
The calendar label and lease anniversary feel different

Likely cause: The engine applies whole analysis-year steps, while a start date can make the preview label easier to read.

  1. Model the change in the intended analysis Year N.
  2. Use the date label as context, not as monthly proration.
Vacancy has no custom schedule

Likely cause: Vacancy rows use a simple annual growth percentage.

  1. Enter the available vacancy growth rate.
  2. Explain a more complex assumption in the rent-roll notes if necessary.

No lease-date proration

The current cash-flow engine projects whole analysis years. Lease start and end dates are descriptive and do not automatically prorate annual rent or stop revenue.

Final verification

  • Custom escalation editor: The replacement reflects the intended annual figure.
  • Tenant detail, Reimbursements: The annual reimbursement calculates from the explicitly selected basis.
  • Tenant drawer > Save Changes: The tenant drawer closes or reports a saved state.
  • Valuation > Cash Flow Projection: Each year follows the lease schedule.
  • No blocking warning, failed status, or unresolved validation message remains in the completed workflow.

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