The rent after adjusting for incentives, giving the true economic value of a lease.
Related terms
- Escalation
A pre-agreed periodic increase in rent, e.g.
- Estimated rental value (ERV)
The open-market rent a property would be expected to command if let at the valuation date on standard terms; the benchmark against which passing rent is judged…
- Fit-out
The work to make an interior space ready for occupation by a tenant.
- Grade A
The highest-quality specification of office or commercial space in a market.
- Gross lease
A lease in which the landlord pays operating costs, bundled into the rent.
- Guarantor
A third party who contractually undertakes to meet the tenant's obligations if the tenant defaults, strengthening the landlord's covenant.
- Headline rent
The quoted rent before deducting incentives such as rent-free periods.
- Heads of terms
A non-binding summary of the principal commercial terms agreed in principle before lawyers draft the lease or sale contract; also called a term sheet or letter…