Analysis of effective rents tends to be superior to analysis of total rents over the life of a lease.

Question

Quizplus · Accepted Answer

Effective rent takes into account factors such as concessions, rent escalations, and lease incentives, which can significantly impact the actual cost of renting a property over its lease term. Total rents may not provide a full picture of the true cost of occupancy. Therefore, analysis of effective rents is a more accurate and useful tool for analyzing the financial aspects of leasing.

Analysis of Effective Rents Tends to Be Superior to Analysis