Lease Rate

Lease Rate

The amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile. The lease rate that the lender earns from allowing someone else to use his property compensates him for not being able to put that property to another use during the term of the lease.

In commercial real estate, the lease rate is commonly stated as a dollar amount per square foot of space per year. To get a true idea of the cost of renting a space, in addition to the lease rate, the potential tenant will need to know if the lease is single, double or triple net. In other words, whether it is he or the property owner who will be responsible for expenses such as utilities, maintenance and property taxes.

In the case of an automobile lease, the monthly payment on the vehicle is based on the car's expected depreciation and residual value (a predetermined amount that the car will be worth at the end of the lease term) as well as the lease rate, which is usually stated as a percentage. Through monthly payments, the lessee compensates the automobile dealer for both the vehicle's depreciation and for tying up assets in vehicles instead of investing that money elsewhere.


Investment dictionary. . 2012.

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Look at other dictionaries:

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  • LEASE AND HIRE — The Hebrew term sekhirut embraces the lease of immovable property (houses and fields) as well as the hire of movable property and personal services, and is a near parallel of locatio conductio rei in Roman law. In this article the term hire is… …   Encyclopedia of Judaism

  • lease — lease1 leasable, adj. leaseless, adj. leaser, n. /lees/, n., v., leased, leasing. n. 1. a contract renting land, buildings, etc., to another; a contract or instrument conveying property to another for a specified period or for a period… …   Universalium

  • lease — 01. They didn t want to buy a new car, so they [leased] one for a year. 02. In Quebec, if you want to rent an apartment, you have to sign a [lease] for at least a year. 03. When we signed the [lease] for our apartment, we had to pay a $200 damage …   Grammatical examples in English

  • lease — [[t]lis[/t]] n. v. leased, leas•ing 1) bus a contract conveying land, renting property, etc., to another for a specified period 2) the property leased 3) the period of time for which a lease is made: a five year lease[/ex] 4) to grant the… …   From formal English to slang

  • lease — /lis / (say lees) noun 1. an instrument conveying property to another for a definite period, or at will, usually in consideration of rent or other periodical compensation. 2. the period of time for which it is made. 3. land which has been leased …  

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  • Annual percentage rate — Parts of total cost and effective APR for a 12 month, 5% monthly interest, $100 loan paid off in equally sized monthly payments. The term annual percentage rate (APR), also called nominal APR, and the term effective APR, also called EAR,[1]… …   Wikipedia

  • Interest Rate — The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash …   Investment dictionary

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