Definition
Face rent adjusted for concessions, free rent, and tenant improvement costs, amortized over the lease term.
Example
A $38 face rent with six months free and a $60 TI allowance produced a much lower net effective rent.
Related terms
Frequently asked questions
What does Net Effective Rent mean in real estate?
Face rent adjusted for concessions, free rent, and tenant improvement costs, amortized over the lease term.
How is Net Effective Rent used in practice?
A $38 face rent with six months free and a $60 TI allowance produced a much lower net effective rent.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.