@Mike9241 wrote:
was the rent set at the inception of the lease at Fair Rental Price over the term of the lease? if so, and FRP was subsequently to increase substantially, my unauthoritative position is you are charging FRP.
For whatever it is worth, I absolutely agree with the statement quoted above and would measure FRP at the inception of the lease term.
Owners (landlords) cannot be expected to anticipate drastic and substantial changes in market conditions over the course of long-term leases. This can go the other way, as well, with the market changing in favor of the owner (i.e., where the FRP is actually below the rate specified in the lease).
Either way, both the owner and tenant are generally locked into the rate specified in the lease at its inception which is the point, in my opinion, where the FRP should be measured.
