Calculate net effective rent for real estate investments and properties
Enter asking rent, lease term, total concessions (free months, TI allowance). The calculator computes the effective rent after concessions.
A 5-year lease at $50/sq ft with $10/sq ft TI and 3 months free rent has an effective rent of $45.50/sq ft.
Shows true cost after concessions (free months, TI allowance). Landlord may quote $30/sf but with concessions, effective rent is $27/sf.
Sum all rent payments over lease term, subtract concessions, divide by lease term. Spreads free rent and TI over entire period.
Yes, GAAP requires straight-line rent recognition, effectively using net effective rent over lease term for financial reporting.
Net effective rent is the average rent paid per month after factoring in concessions like free rent or tenant improvements. It reflects the true cost of the lease over its entire term.