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 over- or under-rented.
Related terms
- 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…
- Inducement
A financial incentive offered by a landlord to secure a letting, such as a fit-out contribution, capital payment, or rent-free period; heavily used in soft Gul…
- Landlord representation
Advisory acting on behalf of an owner to lease and market space.