lease_effective_rent: Lease effective rent from a stream of lease cash flows

In cre.dcf: Discounted Cash Flow Tools for Commercial Real Estate

Lease effective rent from a stream of lease cash flows

Description

Discounts a lease cash-flow vector and converts its present value into an equivalent level annuity. This is a compact helper for comparing lease structures with different concessions, rent steps, or timing conventions.

Usage

lease_effective_rent(
  cashflows,
  discount_rate,
  area = NULL,
  timing = c("advance", "arrears"),
  perspective = c("landlord", "tenant")
)

Arguments

cashflows	Numeric vector of lease cash flows already expressed from the chosen perspective.
discount_rate	Numeric scalar in [0, 1]. Discount rate per period.
area	Optional numeric scalar greater than 0. When supplied, the effective rent is also reported per unit of area.
timing	Character string. Either "advance" (cash flows at the start of each period) or "arrears" (cash flows at the end).
perspective	Character string. Either "landlord" or "tenant"; this does not alter the sign convention and is stored for reporting.

Value

A one-row tibble with present value, equivalent annuity, and effective rent. When area is supplied, a per-area metric is also returned.

Examples

lease_effective_rent(
  cashflows = c(0, 100, 100, 100, 100),
  discount_rate = 0.08,
  timing = "arrears",
  perspective = "landlord"
)

cre.dcf documentation built on April 10, 2026, 5:08 p.m.