What type of interest is typically associated with a leased property listed in an appraisal report?

Leased fee interest is related specifically to the ownership rights associated with a property that is currently leased to a tenant. This type of interest reflects the landlord's (property owner's) rights to receive rental income from the tenant, as well as the right to possess the property when the lease term ends. In the context of an appraisal report, the leased fee interest is important because it captures the value derived from both the ownership of the real estate and the revenue generated from leasing it out.

Fee simple interest represents full ownership of a property, including the rights to sell, lease, or develop the property without limitations, assuming no encumbrances exist, which typically wouldn't apply in the context of a leased property. A leasehold estate, on the other hand, represents the tenant's interest in the property, giving them the right to use and occupy the property for the duration of the lease but does not reflect the owner's perspective. Fee simple defeasible pertains to ownership subject to certain conditions or limitations, which doesn't accurately describe the situation of a leased property.

Thus, the leased fee interest is a more precise term that captures the value and rights associated with a property that is income-producing through rent, making it the correct answer in this context.