A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Net Absorption
The net change in occupied space in a given market between the current measurement period and the last measurement period. Net absorption can be either positive or negative and must include decreases as well as increases in inventory levels. It is recommended to disclose the inclusion (Total Net Absorption) or exclusion (Direct Net Absorption) of sublease space in any calculation of net absorption.
Net Effective Rent
Expressed in dollars per square foot per month, it is all the concessions given by a landlord to entice tenants to lease space plus escalations and, in some cases, broker commissions. (Synonym: Landlord Effective Rent)
(CoStar) Effective rent equals contract rent less free rent and any cash allowances such as a lease buyout or moving allowance. Escalations written into the lease are included in the calculation of effective rent. Tenant improvement allowances and brokerage commissions are not subtracted from the contract rate in calculating effective rent. (This definition is equivalent to the tenant effective rent. A landlord or lender would likely include all tenant improvement allowances and brokerage commissions in calculating effective rent.)
Net Lease
A lease in which the tenant pays all property operating expenses in addition to the stipulated rent. Disclosure of the specific expenses to be paid directly by the tenant is required.
Net Rentable Area
Net Rentable Area (NRA) [BOMA] - no definition provided