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Glossary of Commercial Real Estate Terms

The best glossary of commercial real estate terms in the world. Period.

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Commercial Real Estate Terms

Negotiating
Term Definition
Effective Rents

The net rent paid by a tenant, adjusted for incentives provided by a landlord (such as free rent, and tenant improvement allowances).  

Application 

Tenant A leases space at $25 per square foot on an as-is basis.  Tenant B leases space in the same building at $26 per square foot but achieves 6 months of gross free rent.  The effective rent the landlord receives from Tenant A is $25, while the effective rent from Tenant B is much lower. 

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