---
title: "Fair market rent (FMR) — Class A Atlas glossary"
description: "Negotiated definition of market rent for renewal options."
canonical: https://classa.info/glossary/fair-market-rent
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Negotiated definition of market rent for renewal options.

## TL;DR

- Negotiated definition of market rent for renewal options.
- Drafted into renewal options to govern rent at exercise.

# Fair market rent (FMR)

*Leasing · US*

## Short definition

Negotiated definition of market rent for [renewal](/topics/lease-renewal-strategy) options.

## Full definition

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.

## Why this matters for Class A leasing

Fair market rent (FMR) is part of the leasing vocabulary that institutional [Class A](/glossary/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](/topics/cross-border-expansion) occupiers can translate quickly.

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