One Complication That Appraisers May Face Is the Variety of Lease

Multiple Choice

One complication that appraisers may face is the variety of lease types that may be available for a particular property type. Which of the following statements best describes a "graduated" or step-up lease?

A) The monthly rent remains fixed over the entire lease term.
B) The lease establishes schedule of rental rate increases over the term of the lease.
C) Rental rate increases are indexed to the general rate of inflation.
D) Rental rates are a function of the sales of the tenant's business.