What is the statement of property rights expected to be found in an appraisal of an investor-owned corporate headquarters office building purchased on a long-term sale/lease back?

In the context of a long-term sale/leaseback arrangement, the appraisal focuses on the interest held by the property owner—not just the physical structure, but the rights associated with it. In this scenario, the corporate headquarters has likely been sold to an investor, who then leases it back to the corporation for continued use.

The leased fee interest represents the rights of the landlord (or lessor) who has leased the property to the tenant (or lessee). This is in contrast to a fee simple interest, which would imply that the owner has complete and unrestricted rights to the property, including the ability to occupy it themselves. In a sale/leaseback situation, the investor now holds the leased fee interest, as they retain ownership of the building but have organized a lease agreement to allow the original owner to continue using the property.

The leasehold estate option refers to the tenant's rights under the lease, which in this case would be the corporation using the building, but the emphasis of the appraisal here is on the rights of the investor who holds the property rights post-sale. Therefore, the correct identification of property rights in this scenario is indeed the leased fee interest.