Dictionary of Business Terms: leasehold value
leasehold value
value of a tenant's interest in real estate, especially under a long-term lease at below-market rental rates.
Dictionary of Real Estate Terms: leasehold value
leasehold value
the value of a tenant's interest in a lease, especially when the rent is below market and the lease has a long remaining term.
Example: When land rent for an acre of Manhattan was $10,000 per year, a knowledgeable investor bought the rights of a 99-year lease. A comparable tract today commands $150,000 annual rent. The leasehold value of the subject property is the present value of the bargain rent ($140,000 per year) over the remaining lease term.
