The average per square foot rent paid by the tenant over the term of a lease. Takes into account only free rent and rental adjustments. Does not include allowances, free parking and other similar landlord concessions.
The actual rental rate per square foot paid by the tenant after first subtracting any free rent from the total lease obligation.
The actual rental rate to be achieved by the landlord after deducting the value of concessions from the base rental rate paid by a tenant, usually expressed as an average rate over the term of the lease.
Equals contract rent less free rent and any cash allowances such as a lease buyout or moving allowance. Escalations written into the lease are included in the calculation of effective rent. Tenant improvement allowances and brokerage commissions are not subtracted from the contract rate in calculating effective rent.
The gross rent payable per month by the occupiers which includes the base rent, maintenance charges, imputed costs of loss of interest on security deposit and rental advance. The effective rent indicates the total cash outflow of an occupier every month on account of leasing any property.
Effective rent deducts from face rent any concessions or rent specials for any unit type offered at a surveyed project. (Delta Associates)