What does rental rate mean

Net Rentable Area means with respect to any Real Estate, the floor area of any buildings, structures or improvements available for leasing to tenants determined in accordance with the Rent Roll for such Real Estate, the manner of such determination to be reasonably consistent for all Real Estate of the same type unless otherwise approved by the Agent.

Market Rate means the then market rental rate as determined by Landlord and agreed to by Tenant, which shall in no event be less than the Base Rent payable as of the date immediately preceding the commencement of such Extension Term increased by the Rent Adjustment Percentage multiplied by such Base Rent.

Tenant acknowledges and agrees that, if Tenant has elected to exercise the Extension Right by delivering notice to Landlord as required in this Section 40 a , Tenant shall have no right thereafter to rescind or elect not to extend the term of the Lease for the Extension Term. Fair Market Renewal Term A term with respect to which the Lessee has exercised its option to renew the Lease pursuant to the second paragraph of Section 4. Rental Value means Business Income that consists of:.

Fair Rental Value as used in this Lease, shall be equal to the annual rent per rentable square foot including additional rent and considering any "base year" or "expense stop" applicable thereto , including all escalations, at which tenants pursuant to leases consummated within the twelve 12 month period preceding the first day of the Option Term , are leasing non-sublease, non-encumbered, non-equity space that is not significantly greater or smaller in size than the subject space, with a comparable level of improvements excluding any property that Tenant would be allowed to remove from the Premises at the termination of this Lease , for a comparable lease term, in an arm's length transaction, which comparable space is located in the "Comparable Buildings," as that term is defined in this Section 2.

The Concessions shall be reflected in the effective rental rate which effective rental rate shall take into consideration the total dollar value of such Concessions as amortized on a straight-line basis over the applicable term of the Comparable Transaction in which case such Concessions evidenced in the effective rental rate shall not be granted to Tenant payable by Tenant.

Renewal Rent. The amount payable by the Lessee as rent in accordance with Section 4. Additional Rents shall have the meaning assigned thereto in Section Tenant shall pay and be liable for all rental, sales and use taxes but excluding income taxes , if any, imposed upon or measured by Rent. Base Rent and recurring monthly charges of Additional Rent shall be due and payable in advance on the first day of each calendar month without notice or demand, provided that the installment of Base Rent for the first full calendar month of the Term, and the first monthly installment of Additional Rent for Expenses and Taxes, shall be payable upon the execution of this Lease by Tenant.

All other items of Rent shall be due and payable by Tenant on or before 30 days after billing by Landlord. Rent shall be made payable to the entity, and sent to the address, Landlord designates and shall be made by good and sufficient check or by other means acceptable to Landlord.

Rent for any partial month during the Term shall be prorated. No endorsement or statement on a check or letter accompanying payment shall be considered an accord and satisfaction. Initial Rate of Interest means the initial rate of interest per annum specified in the Final Terms;. Monthly Rent means the monthly installment of Minimum Annual Rent plus the monthly installment of estimated Annual Operating Expenses payable by Tenant under this Lease.

Supplemental Rent means any and all amounts, liabilities and obligations other than Basic Rent which any Lessee assumes or agrees or is otherwise obligated to pay under the Lease or any other Operative Document whether or not designated as Supplemental Rent to the Lessor, the Agent, any Lender or any other party, including, without limitation, amounts under Article XVI of the Lease, and indemnities and damages for breach of any covenants, representations, warranties or agreements, and all overdue or late payment charges in respect of any Funded Amount.

Basic Rent means Basic Rent as defined in Paragraph 6. Lease Year means each consecutive twelve-month period beginning with the Commencement Date, except that if the Commencement Date is not the first day of a calendar month, then the first Lease Year shall be the period from the Commencement Date through the final day of the twelve months after the first day of the following month, and each subsequent Lease Year shall be the twelve months following the prior Lease Year.

He is busy running the surveys and crunching the numbers to make sure the site selection process runs smoothly. You can also manage your subscription preferences. By: Taylor McHargue. What does base rent include? Can base rent be negotiated? What are base rent escalations? What is Base Rent? What Does Base Rent Include? Can Base Rent Be Negotiated? When it comes to cars and equipment, the leasing company essentially buys the car from the dealer and rents it to you.

Although the dealer and the leasing party can be the same person, setting up the three-party agreement allows the dealership to sell inventory to the leasing arm and the leasing arm to generate income on these pseudo loans before moving the vehicle back into the dealership as used inventory.

The lessee gets a car that they can use without the burden of ownership. In the case of an automobile lease, the monthly payment on the vehicle is based on the car's expected depreciation and residual value—a predetermined amount that the car will be worth at the end of the lease term—as well as the lease rate, which is usually stated as a percentage.

Through monthly payments, the lessee compensates the automobile dealer for both the vehicle's depreciation and for tying up assets in vehicles instead of investing that money elsewhere. In this case, the lease rate is roughly equivalent to an interest rate. The lease payments include the lease rate factor, also called the money factor , that captures the financing element of car leases.

In the case of commercial property, the building has been constructed as an investment with the hopes of bringing in tenants. There are only two entities in this transaction, and any compensation for the initial investment in the building is baked into the lease rate as part of the overall business plan. Real Estate Investing. Auto Loans. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. What Is a Lease Rate? Key Takeaways A lease rate is an amount paid by the lessee to the lessor for use of an asset for a set period of time.