TI allowance and free rent: net effective rent calculator

How is it calculated?

• Net effective rent = (total base rent you’ll pay − TI allowance) ÷ years in the term.
• The discounted version turns everything into today’s dollars at the rate you enter, then into a level annual rent.
• The all-in line adds any build-out cost above the allowance, since that comes out of your pocket.

It leaves out additional rent, which usually isn’t affected by incentives. See the net effective rent guide.

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