Effective rent is the total base rent you'll pay over the term, after free rent, divided by the number of months and the square footage. It turns a stack of deal terms into one comparable monthly rate per RSF.
Net of TI goes one step further: it subtracts the landlord's improvement allowance, spread across the term. A higher asking rate with a bigger TI package can be the better deal, and this shows you when.
The calculator also shows average face rent (the average asking rate over the term, including increases) and total base rent, so you can see the full commitment.
Does this include operating expenses?
No. It compares base rent only and leaves out operating expenses, property taxes and insurance. If one option is full service gross and the other is NNN, the NNN option's real cost will be higher than this shows.
Why doesn't it discount for the time value of money?
To keep the comparison simple and transparent. Some analyses use a net present value calculation, which gives extra weight to rent paid sooner. If you want that view, we can walk through it with you.
What else should I compare besides the rent?
Term length, renewal and termination options, expansion rights, parking costs, how operating expenses are passed through and how much of the build-out the TI allowance really covers.