Face rent minus the present value of all concessions, expressed per square foot per year.
Lease economics · Global
Face rent minus the present value of all concessions, expressed per square foot per year.
Effective rent is the only meaningful number for cross-deal comparison. A 10-year deal at $150/sqft face with 18 months free has an effective rent of approximately $130/sqft. The same effective rent can be achieved with $135 face and 6 months free. Always model effective.
Effective rent is part of the lease economics vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.