effective-rent-analyzer

Net Effective Rent (NER) calculation determines the constant annuity equivalent of a lease's cash flows after accounting for all tenant incentives, revealing the true economic value to the landlord.

Breakeven rent analysis calculates the minimum rent required to cover upfront costs like Tenant Improvements (TI) and Leasing Commissions (LC) using the Ponzi Rental Rate (PRR) framework.

NPV quantifies the Net Present Value of a lease deal to assess landlord profitability and provides investment recommendations based on lease terms, concessions, and discount rates.

Yes, you can analyze a new lease offer to determine if the proposed rent and concessions result in a positive NPV and a NER that exceeds the breakeven threshold, ensuring the deal creates value.

Yes, a discount rate is required to calculate NER and NPV, such as the 7.5% rate used in the quick start example to evaluate the industrial-lease-offer.json file.

Headline rent misrepresents lease value because it ignores tenant incentives, whereas Net Effective Rent cuts through misleading headline rents to reveal the true economic value to the landlord.