How do comparable lease rates influence a property’s Opinion of Value?
Category:
Business & Property Value
Comparable lease activity helps determine whether existing rental rates reflect current market conditions. If rents are significantly below market, buyers may recognize opportunities for future income growth. Conversely, above-market rents may require careful evaluation regarding long-term sustainability.
Lease comparables provide valuable context by illustrating how similar space is currently being leased within the marketplace.
Understanding lease trends helps explain future income potential—not simply current income.