01 A free tool
Effective rent and concessions
Six weeks free on a fifteen month term is not six weeks free.
Effective rent
Concession value
Discount to face
EFFECTIVE RENT ACROSS EVERY TERM · THE PLANE IS FACE RENT
How it works
Free weeks convert to months at weeks × 7 ÷ 30.4375, then spread across the whole term rather than only the months they are taken in.
effective = face × (term − monthsFree) ÷ term
A dollar discount is handled the same way: total dollars given back, divided by the full term.
The trap is the term. Six weeks free on a twelve month lease is an 11.50% discount. The identical six weeks on a fifteen month lease is 9.20%. Comparing two comps without normalising for term compares nothing.