IMPUTED
RENT
The
rental income from a building assuming market rents and full
occupation. The valuer should be cautious about using, or assuming
that a commercial building with a large complex rent schedule would
ever reach the stage that most leases are at market rent. This is
because leases fall due or have new rents determined at different
dates and it may well be that the building will never achieve a
greater ratio of passing rents to imputed rents than that existing at
the date of valuation.
This
is an argument against using the
shortfall method
of valuation.