Property Valuation
When an Indiana commercial tenant has an above-market lease (paying more than market rent), the property value from the leased fee interest would typically be:
ABelow market value
BAbove what the unencumbered fee simple value would be, since the above-market income stream enhances value✓ Correct
CEqual to the fee simple value
DIrrelevant to appraisal
Explanation
When a tenant is paying above-market rent under a lease, the leased fee interest (property encumbered by the lease) is worth more than the unencumbered fee simple, because the investor receives income above what the market would otherwise produce.
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