For Most Commercial Property Types, Lease Lengths Can Vary Considerably

question 4

Multiple Choice

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:

• A) Delay of re-leasing costs
• B) Reduction of risk associated with declining interest rates
• C) Gain flexibility
• D) Stability of future cash flows

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