What this article presents is a fresh view on the topic of valuing leased property and how this fresh view addresses many of the issues raised by David Lennhoff, CRE, in a recent Real Estate Issues dealing with answering the “wrong question.” 1 This fresh look on valuing leased property helps the appraiser to define markets more clearly and concisely, and guides the appraiser to conclude the unsurpassed highest and best use of the property being appraised.
Of these, the leased fee and the fee simple have drawn significant attention as to their proper use in various appraisal assignments. The real estate appraisal profession has for years discussed various types of ownership interests in real property that can be valued.
