Property Valuation
What is 'market rent' versus 'contract rent' in a Delaware lease analysis?
AMarket rent is what the property currently rents for; contract rent is the asking price
BMarket rent is the current competitive rental rate; contract rent is the amount specified in the existing lease✓ Correct
CThey are the same in an arm's-length transaction
DMarket rent applies to commercial leases; contract rent applies to residential leases
Explanation
Market rent is the rent the property could command in the open competitive market. Contract rent is the actual rent per the lease. The difference matters: a below-market lease reduces leased fee value; an above-market lease increases it.
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