Property Valuation
In Colorado real estate, 'market rent' differs from 'contract rent' in that:
AMarket rent is always higher than contract rent
BMarket rent is what a property could currently rent for in the open market; contract rent is what the tenant is currently paying✓ Correct
CContract rent is always higher than market rent
DThey are the same thing in a stable market
Explanation
Market rent (economic rent) is what a space would command in the current open market. Contract rent is the actual amount the tenant currently pays per the lease. The difference (overage or underage rent) affects the value of leased property.
Related Colorado Property Valuation Questions
- A Colorado appraiser's adjustment grid shows the subject property is superior to most comparables. Most adjustments to the comparables will be:
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