A 12-unit apartment building has a potential gross income of $120,000, comprised entirely of market rents. The market vacancy rate is 4%, but the subject's historical vacancy and collection loss over the past three years has averaged 9%. When developing an opinion of market value using the income approach, which vacancy rate should the appraiser use to estimate Effective Gross Income?

In a percentage lease, rent is commonly structured as:

Escalation clauses and expense stops in a lease matter to the income analysis because they:

In a DCF, what is the reversion?

Potential gross income differs from effective gross income in that PGI assumes:

The reversion in a discounted cash flow model represents:

Two identical buildings differ only in risk: one has a single tenant on a short lease, the other five tenants on staggered terms. How do their cap rates compare?

Contract rent on a leased office is $30 per sq ft; market rent is $26. The $4 difference is called:

Building A (new, credit tenant, 20-year lease) and Building B (older, month-to-month tenants) sell the same week. Their cap rates should differ how?

An appraiser is analyzing a 15-unit apartment building. Market research indicates a 6% vacancy rate is typical for similar properties, but this property's historical vacancy has averaged 4%. The subject has experienced a 1% collection loss (uncollectible rents) over the past two years. When estimating effective gross income for the subject, what vacancy and collection loss percentage should the appraiser apply?

An overall rate extracted from a sale whose NOI excluded reserves, applied to a subject NOI that includes them, will: