A blend-and-extend is a renegotiation in which the tenant extends its term in exchange for a blended, often lower, rental rate.
A blend-and-extend typically happens when a tenant wants lower occupancy costs and the landlord wants more term. The new rate blends the existing rent with the current market rate, and the lease runs longer in return. For an investor the trade-off is lower near-term income in exchange for more years of secured rent, which can improve financing options and resale value. When evaluating a property that has gone through one, check the amended lease and whether the changes affect escalations, options, or guarantees.