How does market rent usually differ from net effective rent?

The correct choice highlights that net effective rent takes into account additional items related to the lease, such as concessions or discounts that might be offered to a tenant. This makes net effective rent a useful metric for landlords and tenants as it reflects the actual financial implications of a lease agreement, beyond just a simple monthly rent amount.

Market rent, on the other hand, is the price that a property would typically rent for in the current market, not considering any concessions or adjustments for specific lease agreements. It represents the rent that would be expected based on comparable properties and market conditions.

In this context, while market rent indicates a straightforward price expectation based on prevailing conditions, net effective rent provides a more comprehensive view of what tenants might actually pay over the term of the lease once discounts and concessions have been applied. This distinction is essential for evaluating rental affordability and potential cash flow for landlords.