Real Estate Glossary | Colliers University

Word of the Week

face rent

The identified rental rate in a lease (also known as contract rate), as shown in the lease itself.

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effective rent

The dollar per square foot per year, which the tenant actually pays on average over the term of the lease. This would be the average of specified rents in a stair-stepped lease, as well as the average rent of a lease with substantial free rent period.

percentage increase to rent

Changes in the base rent during the term of the lease, including fixed percentages, C.P.I. increases, or pre-set “bumps” in the rental rate at specified points in the lease term.

fixed increase to rent

A rental rate which increases by fixed amounts during the period of the lease term.

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