Holdover Tenant

A holdover tenant is a lessee who remains in possession of the property after their lease term expires without executing a renewal, typically triggering holdover provisions that charge 150-200% of the prior rent to incentivize either a new lease or a timely vacancy.

Holdover Tenant is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Holdover Tenant helps investors make informed acquisition and management decisions.

Holdover Tenant directly influences how commercial properties are valued, financed, and traded. Changes in Holdover Tenant can impact cap rates, NOI calculations, and overall investment performance for net lease properties.

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General and for orientation only. How any of this applies to a specific property, lease or transaction is a question for your own advisors. Ask about a property.