Lease Rate

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Lease Rate'

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.

Search results for

'Lease Rate'

  • CFA Question of the Week 03/15/2006 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/031506.asp
    ... Therefore, PV = 63,559 *Note that we have to use the lower of the lease rate
    or the rate on the firm's general debt. Step 2: Amortization ...

  • CFA Level 1 Study Guide - Liabilities - Determining The Value Of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/lease-asset-value-determination.asp
    ... Interest Rate On Debt Market Value; 9.16 Capital And Operating Leases; 9.17 Effects
    Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease And ...

  • New Wheels: Lease Or Buy?

    http://www.investopedia.com/articles/pf/05/042105.asp
    ... depreciation rate. Devious dealers try to shift more of the depreciation cost onto
    you by embedding an unfairly low residual value. Also, when entering a lease ...

  • CFA Question of the Week 06/20/2006 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/062006.asp
    ... of lease PMT = -32000 I = 11% N = 5 CPT PV = 118,269 Book value = 32,640 + 118,269 =
    $150,909 Step 2: Interest Expense = Previous BV of lease x interest rate. ...

  • 6 Ways Businesses Take Advantage Of Real Estate - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/6-Ways-Businesses-Take-Advantage-Of-Real-Estate.aspx
    ... This type of lease can help businesses gain traction in new locations and weather ...
    net income not exceeding $2.5 million with long-term, fixed-rate financing. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Exchange-Rate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/exchange-rate-risk.asp
    ... Interest Rate On Debt Market Value; 9.16 Capital And Operating Leases; 9.17 Effects
    Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease And ...

  • CFA Level 1 Study Guide - Liabilities - Effects Of Capital Vs. ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/capital-operating-leases-effects.asp
    ... Interest Rate On Debt Market Value; 9.16 Capital And Operating Leases; 9.17 Effects
    Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease And ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Measuring ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/measuring-interest-rate-risk.asp
    ... Interest Rate On Debt Market Value; 9.16 Capital And Operating Leases; 9.17 Effects
    Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease And ...

  • CFA Level 1 Study Guide - Portfolio Management - Rate of Return ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/rate-of-return-basics.asp
    ... Interest Rate On Debt Market Value; 9.16 Capital And Operating Leases; 9.17 Effects
    Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease And ...

  • CFA Level 1 Study Guide - Fixed Income Investments - London ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/libor-london-interbank-offer-rate.asp
    ... Interest Rate On Debt Market Value; 9.16 Capital And Operating Leases; 9.17 Effects
    Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease And ...

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