What term is used for the lease base rent after accounting for rent concessions?

The term "effective rent" refers specifically to the base rent amount after accounting for any rent concessions offered to a tenant. Rent concessions may include discounts, free rent periods, or other incentives that reduce the rental cost for the tenant. Thus, when these concessions are taken into consideration, the effective rent provides a clearer picture of the actual income the landlord will receive from the lease agreement.

This concept is particularly important in real estate and property management as it helps landlords assess the true value of their leased properties and enables prospective tenants to compare rental costs accurately. Understanding effective rent is crucial for financial analysis, as it reflects the net rent adjustments rather than just the gross rental figures.