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.