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hello and welcome to feasibility.pro today we are going to talk about net effective rent what is net effective rent and how do we calculate what are the uses net effective rent or sometime called just the effect of rent is a cash remaining to the landlord after paying all the expenses for operating the property obviously when we say cash remaining we are talking about the cash in present term i taking the time value of money into account the net effective rent is expressed as amount over a unit area over time so it is like dollars per square meter per month or per year whatever it is effective rent is a very great tool in assessing various lease offers for a space so if you have a lease offer for a space so it is very easy because you have only one lease offer but still you can find out what is the effective rate but sometimes you have two or three or even more please offer for that particular space and they have different terms a rent-free period tenant improvement or anything else o