Definition of Market Rent
“Market Rent” is the rent for the premises, after being placed on the open market, that a willing tenant would have paid to a willing lessor/landlord,
assuming that: (1) There is no pressure on either one to lease the premises; and
(2) The tenant and lessor/landlord know all the uses and purposes for which the premises are reasonably capable of being used. A “Market Rent” is often determined by a rent study performed by a real estate appraiser, who will use examples of other leases recently entered into for similar properties in the same general area as the premises (sometimes called “lease comparables”).
DISCLOSURE: Some of the definitions of leasing terms in this glossary have been tailored to reflect the common practice in the leasing of smaller-sized commercial properties in Northern California. These definitions are not intended to be the legal definitions that would typically be used in a legal proceeding.