effective rental rate

effective rental rate

True rent, after taking into account rent concessions; usually expressed as a dollar amount per square foot.Some parts of the country quote rents as dollars per foot per month; others use dollars per foot per year.

Example: If 5,000 square feet of office space normally rents for $20 per foot per year, but the landlord gives 6 months' free rent on a 5-year lease, then the effective rental rate is calculated as follows:

5,000 feet $20 per foot $100,000 per year

6 months free rent $0

4.5 years paid rent @ $100,000 per year $450,000

$450,000 paid rent spread over a 5-year term $90,000 per year effective rent

$90,000 effective rent 5,000 feet $18 per foot effective rental rate

References in periodicals archive ?
Specifically, if the effective rental rate or per unit cost of capital during the contract period is greater for the entrant than for the incumbent firm, the entrant could not profitably enter.
When measured by potential rental revenue per unit per month (defined as the effective rental rate times the occupancy rate), the U.
Atlanta posted the third lowest tenant effective rental rate, $20.
The current average effective rental rate for Class A office space in midtown Manhattan has surpassed the all-time high rental rates reached during the dot-com peak at the end of 2000.
The multi-family purchase market remains heated, even with the residential net effective rental rate in the Manhattan market seeing an increase of less than 1% rental growth in the past year.
Ultimately, after looking at several alternatives, we were able to consummate an effective rental rate that included considerable base building upgrades at a healthy market construction allowance.
In these cases, we typically engage the landlord in simultaneous negotiations which yields our customer a longer lease term, locked in at a below market average effective rental rate.
The office market leveled out in the mid to high-end areas, Grade A office space achieved net effective rental rates estimated at Dh1,700 ($462) per sq m for fully fitted space; an indication that rental rates have now bottomed out.
Landmark Tower, handed over in the third quarter of 2013, achieved net effective rental rates estimated at Dh1,700 per square metre for fully fitted space located on the Corniche.
Effective rental rates and occupancy rates increased, as the market grew by a mere 38,000 units.
Full browser ?