Property Valuation
Under the income approach, 'market rent' differs from 'contract rent' in that:
AA. Market rent is always lower than contract rent
BB. Market rent is what comparable spaces rent for today; contract rent is what the current tenant is actually paying under their lease✓ Correct
CC. They are used for different property types
DD. Market rent includes utilities; contract rent does not
Explanation
Market rent is the current rental rate the property could command in the open market. Contract rent is what the current tenant is paying per their lease agreement.
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