The maximum annual rent at which the demised premises (those transferred by lease) will be expected to be entirely transferred/ let, in an open market setting, at a specific review date by a willing lessor/ landlord to a willing tenant/ lessee (in an arm’s length transaction).
Determination of market rental value is usually based on a study of the ask-bid rental prices for comparable premises. To that end, a host of factors are used including market condition (supply and demand and rental expectations, etc.), the very specific features of a property (that can contribute to its competitiveness), etc. These factors are dynamic and as a result dynamically impact market rental value.
