Which of the following is NOT a component of lease rollover risk?
A)Commissions paid to a leasing agent to find a new tenant
B)Costs of tenant improvements demanded by new tenants
C)Liquidity risk
D)Reduced revenues from vacancy until a new tenant is found

Question

Quizplus · Accepted Answer

Lease rollover risk typically refers to the risk that a commercial property owner will face difficulties in finding a new tenant when the current lease expires, potentially resulting in extended vacancy periods and reduced rental income. Commissions paid to a leasing agent, tenant improvement costs, and reduced revenues from vacancy are all components of lease rollover risk. Liquidity risk, on the other hand, is a separate type of risk that refers to the risk of being unable to meet financial obligations due to a lack of cash or easily marketable assets.

Which of the Following Is NOT a Component of Lease