Market Rent Doesn’t Matter If the Property Can’t Achieve It
Market rent is often used as a benchmark in underwriting.
It helps frame upside, support projections, and anchor value.
But market rent only matters if the property can actually achieve it.
That depends on:
tenant profile
condition and functionality
location within the submarket
competitive positioning
Two properties in the same market can have very different rent ceilings.
Using market averages without adjusting for those differences can overstate income potential—and understate risk.
The question isn’t what the market supports.
It’s what this property can realistically achieve.
