Market leasing assumption

A market leasing assumption (MLA), sometimes known as a speculative rent profile or market rent, is an accounting method used in commercial real estate to produce budget predictions and valuations. It is a sort of template, or standardized lease, that is applied to rental units for periods in the future when there is no contracted tenant. The term


A market leasing assumption (MLA), sometimes known as a speculative rent profile or market rent, is an accounting method used in commercial real estate to produce budget predictions and valuations. It is a sort of template, or standardized lease, that is applied to rental units for periods in the future when there is no contracted tenant. The term "market" refers to the idea that these predictions should match average values seen in the wider real estate market, the fair market rent, as opposed to making assumptions based on the existing tenant's cash flows.
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