Property Valuation
A Wisconsin property with a long-term below-market lease has a value that is typically:
AHigher than if it were at market rent
BLower than if it were leased at market rent, due to the locked-in below-market income✓ Correct
CUnaffected by the lease terms
DEqual to its replacement cost regardless of leases
Explanation
A below-market lease reduces the income the property generates, which decreases the property's income-capitalized value compared to what it would be worth if fully leased at market rents.
Related Wisconsin Property Valuation Questions
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- A Wisconsin appraiser performing a 'retrospective appraisal' (as-of a past date) must:
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- Wisconsin's 'assessed value' for property tax purposes is determined by:
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