The term “market rate” is synonymous with “asking” or “sticker” price, which is generally 10% to 25% higher than either the property owner or listing agent reasonably expects to receive.

Further, because the details of commercial leases are proprietary, the term “market rate” is nothing more than an opinion of value. I view “market rate” as the LOWEST price property owners will accept. Property owners, and their agents, brokers and property managers, see it as the HIGHEST price tenants and buyers will pay. Clearly, we have different ‘opinions’ of value.