Mark-to-market rent means adjusting the rent charged on a unit or space so that it reflects current market rates, rather than continuing whatever rate was set when the existing lease was signed. This typically happens at lease renewal or turnover, when a landlord has the opportunity to reprice a space based on what comparable units are currently commanding rather than an older, potentially below-market rate.
The concept is closely tied to mark-to-market real estate investment approaches, where an owner intentionally acquires a property with rents sitting below current market levels and plans a leasing strategy to close that gap over the hold period. Multifamily assets with short-term leases tend to mark-to-market more quickly than office or industrial properties, where longer lease terms and fixed escalations can delay rent resets for years, making lease structure a key factor in how fast in-place rent catches up to the market.
Further reading: How Mark-to-Market Strategies Influence Tenant Retention
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