WHAT DOES EFFECTIVE RENT MEAN?

Effective Rent is the actual rental rate to be achieved by the landlord after deducting the value of concessions from the base rental rate that are paid or given to the tenant (such as a build out or renovation allowance, free rent, moving allowance, etc.), and is usually expressed as an average lease rate over the term of the lease.

The Effective Rent is essentially the average lease rate the landlord will achieve when they back out the value of the concessions they gave the tenant.