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"Getting a Good Deal"

One of the major concerns of tenants is to insure that "they are getting a good deal" or at least a market deal. Getting a good deal means pricing transparency or finding out exactly what others are paying, not just what landlords are asking. The TenantWise ELR calculator is one of the tools you can use to evaluate different spaces on an economic basis. It is particularly useful when comparing the economic results of offers made by landlords on different spaces, particularly when they are offering different lease terms (i.e. number of years and rents). Other economic terms of a lease obligation can also have significant impact on your costs, (i.e. direct operating versus fixed escalation) but these are not included in the ELR.
The formal definition of an equivalent lease rate is the present value of the rental stream deducting work and free rent and shown as an annuity per square foot. This calculation boils down the value of these three economic factors of a lease of any length (rent, free rent, and work) into one comparable per square foot number.

Try using the ELR calculator for a site you have chosen, or just enter some hypothetical factors. Then compare the ELR to other transactions that have recently closed in a particular submarket. If your hypothetical deal is significantly off from the market transactions, or if more importantly, a current offer from a landlord is significantly greater than the average by submarket, try re-evaluating the situation or discuss it with your TenantWise representative, who can also provide you with additional ELR comparables, as needed.

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