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Free Rent Equivalent Rate Calculator

Free rent concessions translate to a face-rent equivalent.

$

Equivalent face rent PSF

$36.84

Total lease months

120

Rent-paying months

114

How the math works

Face = effective × (total months / paid months). Paid months = total − free.

$35 effective × (120/114) = $36.84 face rent PSF. Modest bump preserves published face for 6 months free.

How to Use

  1. Enter target effective rent PSF.
  2. Enter term years.
  3. Enter free rent months.
  4. Read equivalent face rent PSF.

Frequently Asked Questions

What is this?

Converting a free rent package into an 'equivalent' face rent. Effective rent = face rent × (net months / total months). To back into face: face = effective × (total months / net months). Used by landlords to reset published rents that still meet effective targets.

Why it matters?

Markets comp on face rent. Landlords give free rent to attract without lowering the face-rent number that lenders, appraisers, and buyers watch. A $40 face with 6 free months over 10 years = $38 effective — but listed as $40.

Tenant view?

Tenants should focus on effective rent for cost comparisons. Free rent loses value if early termination occurs before end of term (clawback clauses). Always read the recapture provisions — many clawback free rent if tenant defaults or exits early.

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