This is a follow-up to my previous answer to your question...
Effective Rent uses all of these variables to be accurately calculated:
Sales Tax if applicable
Real Estate Taxes
Tenant Paid TI
Existing Lease Buy-Out (Tenant Paid)
Minus any of the following:
Real Estate Tax Stop
TI Allowance from the Owner
Existing Lease Buy-Out Allowance
EQUAL Pre-Tax Occupancy Cost for Year One of the Lease, starting at time period zero
This would be done for all years of the lease, showing adjustments for any costs that change, such as Rent Escalations and whatever provisions that are in the Lease Agreement that would change.
I hope that this helped!
Francis Lennarz, RE/MAX of Valencia, Commercial
Feb 25, 2015