Research contextSee what supports this page, how current it is, and where comparable or historical context is available.
- Research date
- Sep 21, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
- Operating-model context
- 16 connected conceptsPart of the reviewed REIT Leasing and Capital Deployment; issuer definitions remain distinct where disclosed.
- Company examples
- 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
A REIT GAAP leasing spread compares new lease economics with prior lease economics using a GAAP, straight-line, or net-effective rent framework defined by the issuer.
The metric differs from a cash leasing spread because contractual rent escalators and lease-term economics can affect the average rent recognized across the lease.
Why both measures matter
A REIT can report a strong net-effective spread and a smaller cash spread if the new lease contains significant contractual rent growth after commencement.
That distinction helps investors separate:
- day-one cash economics; and
- average economics across the lease term.
Rexford example
Rexford reports net effective leasing spreads and cash leasing spreads separately for new and renewal leases.
Source:
Always preserve the issuer's methodology. "GAAP spread," "straight-line spread," and "net-effective spread" are not automatically interchangeable across REITs.
Part of the REIT Leasing and Capital Deployment
Connect lease duration, occupancy states, rent mark-to-market, tenant quality and concentration, development returns, and acquisition or disposition pricing to understand commercial real estate cash-flow durability and external growth.
How the model fits together
- Lease rollover and rent mark-to-market: Weighted average lease term and lease-expiration concentration frame when rent rolls, while tenant retention, cash leasing spreads, GAAP or net-effective leasing spreads, and net-effective rent per square foot show how much space renews and at what economics.
- Occupancy, tenant quality, and contractual rent base: Annualized base rent provides the contractual rent weighting base, leased and economic occupancy separate signed space from rent-paying space, and investment-grade mix, top-tenant concentration, and contractual rent growth describe the credit, concentration, and embedded growth profile of that rent stream.
- Development and asset recycling: Development pipeline shows future capital commitments, development yield relates expected stabilized NOI to development cost, and acquisition and disposition cap rates frame the going-in yield bought versus the property yield sold. Issuer definitions differ, so these measures support capital-allocation analysis rather than a standardized arbitrage formula.
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
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