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Adding in these concessions reduces the effective rent, he said.
Also, the rent was advertised as $1,560 a month, but that was the "net effective rent".
After negotiating a free month on a 25-month lease, for an effective rent of $2,568 a month, they felt they could make it work.
UBS received nine months of free rent and $60 a square foot for work on the space, clipping its effective rent to $56.99.
Mr. Lagrimas rented a one-bedroom for $1,650 a month, receiving one month free, so the "net effective rent" is around $1,512.
But with at least 10 months of free rent and $75 a square foot for work on the space, the effective rent drops to $64.52.
Similar(35)
Effective rents have fallen by even more, because landlords are offering generous concessions.
Furthermore, industrial specialists said that asking rents were plummeting statewide, and that in many submarkets, effective rents were the lowest in a decade.
Effective rents, which had fallen by as much as 45 percent, are now inching upward, at least for first-class space, and concessions are shrinking.
Having the offices available for almost immediate occupancy "is a competitive advantage for a landlord," he said, particularly in the current market with effective rents trending down.
Effective rents, after free rent and other landlord concessions, have already started to fall and are expected to decline 30percentt or more across the country from the euphoric days of the real estate boom, according to real estate brokers and analysts.
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