For most commercial property types, lease lengths can vary considerably. Therefore, both parties must tradeoff between the advantages and disadvantages associated with particular leasing terms. Owners may prefer longer leases for all of the following reasons EXCEPT:

Question

Quizplus · Accepted Answer

The other options provide benefits for owners with longer leases. A longer lease allows owners to delay re-leasing costs, reduces risk associated with declining interest rates, and provides stability of future cash flows. It is not in the owner's interest to gain flexibility if it means sacrificing any of these benefits.

For Most Commercial Property Types, Lease Lengths Can Vary Considerably