Back to Glossary

Investment Metrics

Market Rent

The rent a property would command if leased today in an arms-length transaction. Used to evaluate mark-to-market upside.

Full Definition

Market rent is the rent a property would achieve in a current arms-length transaction with a willing, informed tenant. Compared to actual contract rent, market rent reveals mark-to-market upside (or downside) as leases roll. Key metric in value-add underwriting — the gap between contract and market rent drives projected NOI growth.

Related Terms

Rent Roll

Schedule of all tenants in a property showing unit, square footage, lease terms, and rent amounts. Core due diligence document.

Value-Add Real Estate

Investment strategy of buying underperforming commercial properties and increasing value through renovation, rent growth, and repositioning.

Ready to Apply Market Rent?

We can help you understand how this concept applies to your specific commercial real estate investment or transaction.

Talk to an AdvisorAll Glossary Terms

Get Market Insights Delivered

Weekly Central Florida CRE updates — cap rates, new listings, market trends, and investment opportunities. No spam, unsubscribe anytime.