List of
Leasing Terms
Defined in this Glossary


Glossary of Real Estate Leasing


Icon for Market Rent definedIcon for definition of Market RentIcon for Market Rent definition

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”).

Glossary Image: Market Rent DefinedIntro Image: Definition of Market RentIntro Image: Market Rent Defined


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.