---
title: "Effective rent — Class A Atlas glossary"
description: "Face rent minus the present value of all concessions, expressed per square foot per year."
canonical: https://classa.info/glossary/effective-rent
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Face rent minus the present value of all concessions, expressed per square foot per year.

## TL;DR

- Face rent minus the present value of all concessions, expressed per square foot per year.
- Effective rent is the only meaningful number for cross-deal comparison.

# Effective rent

*Lease economics · Global*

## Short definition

[Face rent](/glossary/face-rent) minus the present value of all concessions, expressed per square foot per year.

## Full definition

[Effective rent](/topics/class-a-lease-negotiation) is the only meaningful number for cross-deal comparison. A 10-year deal at $150/sqft face with 18 months free has an effective rent of approximately $130/sqft. The same effective rent can be achieved with $135 face and 6 months free. Always model effective.

## Why this matters for Class A leasing

Effective rent is part of the lease economics vocabulary that institutional [Class A](/glossary/class-a) occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

## See also

- [Face rent](/glossary/face-rent)
- [Rent-free period](/glossary/rent-free-period)

## Related guides

- [Negotiating rent-free periods: the playbook](/guides/negotiating-rent-free-periods)

## Related topics

- [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal.

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Citation: Source: Class A Atlas (https://classa.info/glossary/effective-rent), updated 2026-04-01T00:00:00.000Z.