Existing leases:

a. Can be ignored by potential investors when estimating investment value.

b. Must be considered more carefully when valuing a multi tenant office building then valuing an apartment complex.

c. Are more important when estimating market value than estimating investment value.

d. Should be assumed to have remaining terms of 10 years when estimating investment value.

Question

Business

Brennen Powers

17 March, 15:27

Existing leases:

a. Can be ignored by potential investors when estimating investment value.

b. Must be considered more carefully when valuing a multi tenant office building then valuing an apartment complex.

c. Are more important when estimating market value than estimating investment value.

d. Should be assumed to have remaining terms of 10 years when estimating investment value.

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Answers (1)

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Rambler · Answer 1

B. Must be considered more carefully when valuing a multi tenant office building then valuing an apartment complex.

Explanation:

A lease of building is much more complex than leasing an apartment complex since it may involve multiple parties and multiple lease agreements. The valuation is therefore consider more carefully.