What is go-dark leasing and how might it affect a model during tenant expansions or relocations?

• A. Go-dark refers to tenants expanding occupancy and paying higher rents.
• B. Go-dark refers to tenants vacating; modeling would reflect vacancy increases, lease-up periods, and lost rent.
• C. Go-dark is when a property switches from office to retail; modeling would reflect capex.
• D. Go-dark refers to tenants renewing early; modeling would reflect higher renewals.

Answer: (B)

Go-dark leasing means a tenant vacates the space, leaving it empty and no longer contributing rent. In a financial model, that shows up as higher vacancy, a lease-up period to relet the space, and lost rent during the vacancy.

This is particularly relevant during tenant expansions or relocations because the space the tenant is leaving can go dark even as the landlord seeks a new tenant to fill it. You’d model the timing of that vacancy, the time it takes to re-lease at market rents (plus any concessions or tenant improvements), and the rent lost during the gap. This directly affects cash flow, NOI, and the project’s profitability during the period of relocation or expansion.