Is how is net effective rate calculated on a NNN property?
I've seen net effective **rate** calculated using net rent (which is total base rent - lost rent from base rent concessions), but what if I'm also losing rent from CAM concessions? Can I calculate net effective rate based off of gross rent? Is this called something else? Thank you, all.
[{"id": "hyzit41", "text": "NER = (The average of gross rent over period - average op costs) - other costs associated with deal (ie. Commissions, inducements, leasing fees..etc) \n\nWe take this number divide by year's of the term then divide by size of premises", "replies": [{"id": "hz9b9oa", "text": "Thanks, friend!", "replies": [], "depth": 2}], "depth": 1}]