Straight-line rent

The average annual rent under a multi-year lease agreement that contains contractual increases in rent during the life of the lease. For example if the rent is $100,000 in Year 1, $105,000 in Year 2, and $110,000 in Year 3, the average rent to be recognized each year as revenue under straight-line rent accounting is ($100,000 + $105,000 + $110,000)/3 = $105,000.