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A market leasing assumption (MLA), sometimes known as a speculative rent profile (spec rent) or market rent, is an accounting method used in commercial real estate to produce budget predictions and valuations. It is a sort of template, or standardized lease, that is applied to rental units for periods in the future when there is no contracted ...
The basic definition is also known as WAULT to expiry to make the distinction clear. Depending on the market conditions, one might desire a high or low WAULT. For instance, if the rental market is strong and rents are rising, a low WAULT is desirable as that indicates that the current leases are going to expire or renegotiate in the short term ...
Fair Market Rent in the US context is the amount of money that a given property would command, if it were open for leasing at the moment.. Fair market rent is an important concept both in the Housing and Urban Development's ability to determine how much of the rent is covered by the government for those tenants who are part of Section 8, as well as by other governmental institutions.
Imputed rent is the rental price an individual would pay for an asset they own. The concept applies to any capital good, but it is most commonly used in housing markets to measure the rent homeowners would pay for a housing unit equivalent to the one they own. Imputing housing rent is necessary to measure economic activity in national accounts ...
Real estate benchmarking is the standard of measurement used to analyze the financial characteristics of a real estate investment property. In the general sense, real estate benchmarking refers to the comparison of potential real estate investment properties against a predetermined framework of measurement. In a narrow sense, the term real ...
Real estate economics is the application of economic techniques to real estate markets. It aims to describe and predict economic patterns of supply and demand . The closely related field of housing economics is narrower in scope, concentrating on residential real estate markets, while the research on real estate trends focuses on the business ...
The sales comparison approach (SCA) is a real estate appraisal valuation method that relies on the assumption that a matrix of attributes or significant features of a property drive its value. For examples, in the case of a single family residence, such attributes might be floor area, views, location, number of bathrooms, lot size, age of the ...
the full rent of a property, including both land and improvements as if it were subject to an immediate open-market rental review. [1] The second definition is equivalent to the economic rent of the land plus interest on capital improvements plus depreciation and maintenance—the normal market rent of a property—and is not inherently ...