Net lease glossary
Blend-and-Extend
A lease modification where the landlord grants a rent adjustment in exchange for the tenant extending the lease term.
A blend-and-extend combines the remaining term of an existing lease with a new extension, blending the old and new rents. Typically the tenant gets a lower or flatter rent now in exchange for committing to additional years. Landlords use it to lock in term before a sale or refinancing, which can increase property value even if rent is reduced, since longer term often lowers the cap rate. The math should compare value with and without the extension.