Property Valuation
What is an 'as stabilized' value in Delaware commercial real estate appraisal?
AThe current market value assuming all current leases are stable
BThe estimated market value of a property assuming it has reached stabilized occupancy (typical market vacancy), used when the property is currently vacant or being developed✓ Correct
CThe value after all planned renovations are complete
DThe value of a property assuming interest rates are stable
Explanation
'As stabilized' value is the appraiser's estimate of what the property will be worth once it reaches stabilized occupancy (typical market vacancy rate) after lease-up of a newly developed or vacant property. It is often compared to 'as is' value (current condition) to assess the value-add potential.
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