Gross income multiplier analysis assumes that the subject and comparable properties are collecting market rents. Therefore, it is frequently argued that an income multiplier approach to valuation is most appropriate for properties with short-term leases. Which of the following property types, therefore, would we find it most appealing to use a gross-income multiplier in our analysis?

Question

Quizplus · Accepted Answer

Apartments typically have short-term leases, making them ideal for gross-income multiplier analysis. Office, industrial, and retail properties may have longer-term leases, making other valuation methods more appropriate.

Gross Income Multiplier Analysis Assumes That the Subject and Comparable