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1 – 1 of 1The marketplace has never been as dynamic as it is today. In real estate, many factors are affecting the validity and usefulness of traditional valuation techniques. Rent levels…
Abstract
The marketplace has never been as dynamic as it is today. In real estate, many factors are affecting the validity and usefulness of traditional valuation techniques. Rent levels in many markets have risen so rapidly in the last two years that a wide margin exists between current economic rents and contract rents — resulting in a greater market differential. As leases expire and space is released at much higher rent levels, opportunities occur for rapidly increasing cash flows. (The occurrence of lease expirations and subsequent releasing of the space is commonly referred to as ‘lease rollover’.)