Laserfiche WebLink
Highest&Best Use Leasehold Interest <br /> 1. The reasonably probable use of property The right held by the lessee to use and occupy <br /> that results in the highest value. The four real estate for a stated term and under the <br /> criteria that the highest and best use must conditions specified in the lease. (Dictionary,6th <br /> meet are legal permissibility, physical Edition) <br /> possibility, financial feasibility, and <br /> maximum productivity. Market Area <br /> 2. The use of an asset that maximizes its The geographic region from which a majority of <br /> potential and that is possible, legally demand comes and in which the majority of <br /> permissible, and financially feasible. The competition is located. Depending on the <br /> highest and best use may be for continuation market,a market area may be further subdivided <br /> of an asset's existing use or for some into components such as primary, secondary, <br /> alternative use. This is determined by the and tertiary market areas, or the competitive <br /> use that a market participant would have in market area may be distinguished from the <br /> mind for the asset when formulating the general market area. (Dictionary,6th Edition) <br /> price that it would be willing to bid. (IVS) <br /> Market Rent <br /> 3. [The] highest and most profitable use for The most probable rent that a property should <br /> which the property is adaptable and needed bring in a competitive and open market reflecting <br /> or likely to be needed in the reasonably near the conditions and restrictions of a specified <br /> future. (Uniform Appraisal Standards for lease agreement,including the rental adjustment <br /> Federal Land Acquisitions) (Dictionary, 6th and revaluation,permitted uses,use restrictions, <br /> Edition) <br /> expense obligations, term, concessions, renewal <br /> Hypothetical Condition and purchase options,and tenant improvements <br /> 1. A condition that is presumed to be true (T1s). (Dictionary,6th Edition) <br /> when it is known to be false. (SVP) <br /> Market Value <br /> 2. A condition, directly related to a specific A type of value that is the major focus of most <br /> assignment, which is contrary to what is <br /> real property appraisal assignments. Both <br /> known by the appraiser to exist on the economic and legal definitions of market value <br /> effective date of the assignment results, but have been developed and refined, such as the <br /> is used for the purpose of analysis. <br /> following. <br /> Comment: Hypothetical conditions are <br /> contrary to known facts about physical, 1. The most widely accepted components of <br /> legal, or economic characteristics of the market value are incorporated in the <br /> subject property; or about conditions following definition: The most probable <br /> external to the property, such as market price, as of a specified date, in cash, or in <br /> conditions or trends; or about the integrity terms equivalent to cash, or in other <br /> of data used in an analysis. (USPAP, 2016- precisely revealed terms, for which the <br /> 2017 ed.) (Dictionary,6th Edition) specified property rights should sell after <br /> Leased Fee Interest <br /> reasonable exposure in a competitive market <br /> under all conditions requisite to a fair sale, <br /> The ownership interest held by the lessor,which with the buyer and seller each acting <br /> includes the right to receive the contract rent <br /> specified in the lease plus the reversionary right prudently, knowledgeably, and for self- <br /> when the lease expires. (Dictionary,6th Edition) interest, and assuming that neither is under <br /> undue duress. <br /> 118 <br />