Net lease glossary
Lease Term Remaining
The number of years left in the primary lease term before any renewal options, a major driver of net lease pricing.
Lease term remaining is the time left until the primary term expires, excluding unexercised options. It is one of the biggest drivers of value in net lease: a property with 15 years remaining usually trades at a lower cap rate than the same tenant with three years remaining, because short term exposes the owner to renewal and re-leasing risk. Lenders also size loans and amortization around remaining term.