Required Face Rent from a Target Net Effective Rent

The inverse of net effective rent: the FACE (quoted) rent a landlord must ask to still net a target effective rate after giving free rent and a TI credit. face = (target_NER x term + one-time credit) / (term - free). To net $30/SF over 120 months with 20 months free needs a $36.00 face (16.7% above the effective rate); a $240/SF TI credit pushes it to $38.40. Straight-line (undiscounted) spread, the broker convention -- not a present-value rent. A pricing aid; the executed lease governs.

face_rent = (target_NER x term + one_time_credit) / (term - free_periods); paid = face x (term - free); discount_pct = (1 - NER / face) x 100.

Required face rent (the inverse of the straight-line net-effective-rent spread), per the Appraisal Institute income approach and standard commercial-lease concession practice, by name; the executed lease governs.

Solving the straight-line effective-rent spread for the face rent is a standard commercial-real-estate calculation; the target rate, term, and concessions come from the deal.

Estimate. AHJ and licensed professional govern.

Field names used by the API: target_ner, term_periods, free_periods, face_rent, discount_pct

• Inverse spread face = (target_NER x term + one_time_credit) / (term - free_periods)commercial-lease practice
• Straight-line a straight-line spread, not a present-value effective rentbroker convention
• Excludes ignores escalations and operating-expense pass-throughsscope of this tile