Appraisal for Market Rent

An appraisal for a market rental opinion is required under the terms of a lease that includes a renewal option. This lease provision calls for the landlord and tenant to agree on the market rental rate (as opposed to the original rental rate). If the parties cannot agree, the renewal option calls for an MAI appraisal to be completed and paid for by both parties.

The intended users are the parties or their attorneys. The parties might be so focused on cost that they initially request a restricted-use appraisal. However, this report type does not include presentation and analysis of rental comparables, and the lack of this information might not satisfy one or both parties. The more costly but ultimately effective solution is to prepare a summary appraisal report.