When appraising an investor-owned corporate headquarters purchased through a sale/leaseback, which property rights would typically be stated?

In the context of appraising an investor-owned corporate headquarters purchased through a sale/leaseback, the concept of a leased fee interest is particularly relevant. A sale/leaseback transaction often involves the sale of a property to an investor who then leases it back to the original owner or tenant. This creates a situation where the investor holds a leased fee interest, which represents the ownership rights to the property while the tenant retains the right to use the property under the terms of the lease agreement.

A leased fee interest is essentially the estate held by the landlord in a property that is leased to a tenant. In this arrangement, the investor has the right to receive rent from the tenant, which is a crucial factor in determining the property's value, as the rental income contributes to its income-generating capability. This interest is vital for appraisers to consider, as the income derived from the lease agreement typically influences the appraisal value more than the physical characteristics of the property itself.

In contrast, fee simple interest would reflect outright ownership without any lease obligations, while leasehold estate implies the rights held by the tenant to use the property. The nuances of a sale/leaseback scenario highlight the importance of recognizing the specific property rights involved—here, the leased fee interest is the