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