GPR averaged $6,634 ($7.65 per square foot) annually This is 20 percent under the $8,335 per unit ($9.51 per square foot) for their market rent
This statement allows tenants to sublet at 'market rent
' - even where the relevant lease states that subletting must be at the higher of either the market rent
or passing rent.
It is likely that this would result in a longer time to lease the vacant space and ultimately, a lower market rent
Operating expenses in subsidized properties were close to those for market rent
Second, the article does not state or imply, and I do not believe, that a fee simple estate is equivalent to the physical real estate being leased at market rent
. In fact, Leslie Sellers and I did a presentation on this very issue at the 2016 Appraisal Institute Annual Conference; quoting from one of my slides used in the presentation, '"As if leased at market rent
' is NOT a proxy for fee simple." Finally, while I agree that in a given situation it may not be necessary to separately allocate the present value of excess rent when appraising a leased fee interest (there can be no excess rent in a fee simple estate), I believe that it is always necessary to identify the existence of this non-realty asset when communicating the results of the assignment.
If we proceed from the assertion that appraising the fee simple value is the appropriate methodology, then how should market rent
Since lenders will underwrite to market rent
as a maximum, one doesn't get credit in the NOI for any rents above market that a property may be obtaining; therefore, we were falling far short on the requested loan proceeds.
Reporting of the data is composed of 2,349 market rent
properties containing 633,331 units and 700 subsidized properties containing 98,161 units.
Even if the lease is at market rent
, the fee does not necessarily equal the leased fee.
Tenants won a major concession from landlords last year when the British Property Federation ( which includes some of the UK's largest property owners ( said its members were to allow sub-letting at the market rent
on all new leases.
Scale economies for total operating expenses measured on a dollars-per-unit basis did exist for the market rent
garden properties with individually metered utilities.
Estimated rental value is market rent
. Rent passing or passing" rent is contract rent.