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Example:A recently built 1,000-unit apartment complex is expected to take 2 years to lease up at market rents. At that time, extra advertising will no longer be needed to attract tenants, so expenses will become stable. The appraiser provided a report offering a stabilized value of $100 million for the building. In order to derive its as is value , the appraiser then subtracted from that value for the reduced occupancy and higher expenses expected for the first 2 years.