Net Effective Rent Definition | Law Insider

Net Effective Rent definitionNet Effective Rent means the net present value as reasonably determined by Landlord of the aggregate consideration, determined on an average annual basis, payable to Landlord under the proposal at issue (i.e., either the Advice or the offer to another party, as the case may be), taking into account all base rent, additional rent, free rent, construction or other allowances, the cost of any work performed in the Offering Space by Landlord at its expense, the length of lease term, and all other relevant economic terms.View SourceBased on 10 documents10Draft with AISplit ViewAI-Powered Contracts

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Get StartedSchedule a DemoNet Effective Rent means, for any lease the base rent scheduled under a Tenant Lease, as reduced for any amounts paid by the landlord to or on behalf of the tenant for the purpose of inducing the tenant to enter into such Tenant Lease, including, without limitation, an excessive tenant improvement allowance, moving expenses, free rent periods or abatements or lease buyouts.View SourceBased on 6 documents6Draft with AINet Effective Rent means the net present value of the rent, additional rent, and other charges that would be payable to Landlord under the terms of any proposed lease for and with respect to that portion of the term of the proposed lease equal to the period from the commencement date of such proposed lease through the expiration date, taking into account any construction allowance, the cost of any leasehold improvements proposed to be performed by Landlord, any free rent, and any other monetary inducements payable by Landlord under such proposed lease. If Landlord does not execute a lease with a third party with respect to the Available Space in question within twelve (12) months after the date on which Tenant refuses or is deemed to have refused the offer set forth in the applicable ROFO Notice, or if Landlord desires to offer the applicable Available Space on material terms different than previously described in the ROFO Notice (subject to the proviso regarding net effective rent set forth above), then Landlord must deliver a new ROFO Notice to Tenant in accordance with Section 6.2(a) above.View SourceBased on 3 documents3Draft with AI

Examples of Net Effective Rent in a sentence

• Notwithstanding the foregoing, in the event that the Right of First Offer terminates pursuant to clause (i) above, Landlord shall not lease the Offering Space to another party (other than the current occupant thereof) at a Net Effective Rent (defined below) less than ninety percent (90%) of the Net Effective Rent set forth in the Advice without first giving Tenant another Advice at such lower Net Effective Rent.

• Section 3 of the Assignment further provides that the Annual Net Effective Rent is to be agreed in writing between Prudential and W/C.

• The sum of this amortization and the Net Effective Rent will constitute Base Rent for the First Refusal Space.

• In the event the Net Effective Rent, as finally determined by the above procedure, is (i) in excess of the Minimum Rent, Tenant, within thirty (30) days following such final determination, shall pay over to Landlord all such accumulated excess and (ii) less than the Minimum Rent, Landlord, within thirty (30) days following such final determination, shall pay over to Tenant all such accumulated excess or shall allow Tenant a credit equal to such excess against Base Rent next coming due hereunder.

• Notwithstanding the foregoing, if there are then at least forty-eight (48) months remaining in the Term, as the same may be extended, the lease of the Available Space shall be co-terminus with the Term of the Premises, with the benefit of the same option to extend set forth in Section 10 above; provided that the Net Effective Rent (as defined below) is equivalent (or made equivalent) to the Net Effective Rent of the terms set forth in the Available Space Notice.

More Definitions of Net Effective Rent

Net Effective Rent means the net present value of the rent, additional rent, and other charges that would be payable to Landlord under the terms of any proposed lease for and with respect to that portion of the term of the proposed lease equal to the period from the commencement date of such proposed lease through the last day of the Extension Period, taking into account any construction allowance, the cost of any leasehold improvements proposed to be performed by Landlord, any free rent, and any other monetary inducements payable by Landlord under such proposed lease.View SourceBased on 3 documents3Draft with AINet Effective Rent means the net rental amount to be paid to Landlord, taking into account any tenant improvement expenses and allowances to be incurred by Landlord and any free rent or other monetary concessions granted by Landlord (amortized on a straight-line basis over the life of the lease term proposed under the First Offer Notice or the terms to the potential tenant, as applicable). Notwithstanding anything to the contrary contained herein, Tenant must elect to exercise its right of first offer, if at all, with respect to all of the applicable First Offer Space, and Tenant may not elect to lease only a portion thereof.View SourceBased on 3 documents3Draft with AINet Effective Rent means the rent received by the Landlord after deducting the landlord’s cost of all brokerage commissions and any and all signing bonuses, tenant allowances, periods of rent free occupancy and other consideration given by the landlord to induce the tenant to sign and deliver the lease. If Buyer increases its Deposit to the amount to a total of One Million Dollars ($1,000,000) and has waived or satisfied the conditions in Sections 4.2 through 4.4 above other than for New Title Matters then any such disapproval regarding new leases shall be in the Buyer’s sole and unfettered discretion. Buyer’s approval thereof shall be conclusively deemed to have been given unless Buyer gives Seller notice of its disapproval, together with reasons therefor, within five (5) days after Seller’s notice to Buyer of the new, amended or terminated Lease has been given, which notice must include a copy of such new lease or amendment or termination of any existing Lease. As to any new lease which is executed by Seller between the date of this Agreement and the Closing Date, all Seller’s out-of-pocket costs paid in connection with that new lease (including without limitation commissions, tenant improvement allowances, moving costs, attorneys fees, and rent concession payments) shall, to the extent disclosed to Buyer at the time of Buyer’s approval of the same, be prorated between Seller and Buyer based on the ratio that the base rent received by Seller before the Closing Date bears to the total base rent which is due for the entire initial term of such Lease. Buyer acknowledges that Seller shall have no liability, obligation or responsibility with respect to any representation or warranty which was true and accurate when made by Seller upon the execution of this Agreement and which subsequently becomes untrue or inaccurate for any reason which is not a default by Seller of the express covenants made by Seller in this Agreement unless it results from the willful misconduct of the Seller hereafter. Anything that comes to the attention of Buyer as a result of inspections, tests or investigations made by Buyer or its agents or otherwise prior to the Closing Date, to the extent that Buyer proceeds to closing hereunder despite such matter, shall limit the effect of any representations, warranties, covenants and agreements made by Seller in this Agreement and, if Buyer proceeds to Close of Escrow, Seller’s representations and warranties shall, after the Close of Escrow, be deemed waived acc...View SourceBased on 3 documents3Draft with AINet Effective Rent means, with respect to any Lease demising all or any portion of the Retail Unit entered into by the Borrower after the date of this Agreement, the quotient of (a) all base rent payable under such Lease (taking into account scheduled escalations of base rent (including without limitation, contractual increases in rent set forth in such Lease)) during the initial term of such Lease (not taking into account any portion of the term that is subject to a tenant termination option (other than a termination option that may only be exercised if and when a certain event (such as casualty, condemnation or landlord event of default occurs) or a certain circumstance exists (such as a failure of a tenant to receive utility service for some period of time)) as of the date that such Lease was executed (a “Tenant Termination Option”)) minus all tenant improvement expenses and tenant improvement allowances (if any) payable by Borrower, as landlord, thereunder (but only to the extent such tenant improvement expenses and tenant improvement allowances exceed the amount therefor set forth in the Approved Budget) divided by (b) the rentable square footage demised by such Lease divided by (c) the number years (or fractions thereof) in the initial term of such Lease (not taking into account any portion of the term that is subject to a Tenant Termination Option (other than a termination option that may only be exercised if and when a certain event (such as casualty, condemnation or landlord event of default occurs) or a certain circumstance exists (such as a failure of a tenant to receive utility service for some period of time)) as of the date that such Lease was executed). For the avoidance of doubt, “base rent” under the immediately preceding sentence shall not include any so-called “free rent”.View SourceBased on 2 documents2Draft with AINet Effective Rent means the base rent, including escalations thereto, payable for such First Offer Space, together with all free rent, tenant improvement expenses and allowances and all other out-of-pocket monetary concessions proposed to be provided or paid for by Landlord with respect to such First Offer Space, and any rent stop or base year protections applicable to such First Offer Space (amortized on a straight-line basis over the life of the Initial ROFO Term proposed under the First Offer Notice or the initial lease term of the proposed lease to the third party tenant, as applicable). Notwithstanding anything to the contrary contained herein, Tenant must elect to exercise its right of first offer provided herein, if at all, with respect to the entire First Offer Space identified by Landlord in any First Offer Notice, and Tenant may not elect to lease only a portion thereof.View SourceBased on 2 documents2Draft with AINet Effective Rent means the net present value of the rent, additional rent, and other charges that would be payable to Landlord under the terms of any proposed lease for and with respect to that portion of the term of the proposed lease equal to the period from the commencement date of such proposed lease through the expiration date thereof, taking into account the use of the RFO Premises as a combination laboratory and office space, any construction allowance, the cost of any leasehold improvements proposed to be performed by Landlord, any free rent, and any other monetary inducements payable by Landlord under such proposed lease.View SourceBased on 2 documents2Draft with AINet Effective Rent means, with respect to any Lease, the actual rent per rentable square foot for the first year of such Lease, minus (i) tenant allowance costs per rentable square foot divided by the term of such Lease, (ii) leasing commissions costs per rentable square foot divided by the term of such Lease, (iii) all free rent allowances and/or rental abatements allowable to the Tenant at any time during the term of such Lease per rentable square foot divided by the term of such Lease and (iv) any amount of operating expense reimbursements for the Project with respect to which the Tenant is not required to pay its pro rata share under such Lease and for which the Property Owner is not otherwise entitled to be reimbursed.View SourceBased on 2 documents2Draft with AI

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