Negotiated definition of market rent for renewal options.
Leasing · US
Negotiated definition of market rent for renewal options.
Drafted into renewal options to govern rent at exercise. Definition typically references comparable buildings in the same submarket, in similar condition, with landlord concession packages. The exact comparable set is the most-fought clause.
Fair market rent (FMR) is part of the leasing vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.