Experience of a Fair Market Valuation at option period

[Ed Long]

Hello,

I'm interested in touching base with investors that have been through the option period with a CVS, or similar, where the lease states that the new rent (in the option periods) will be based on Fair Market Value. This seems to have significant risk and weight on the assessment process. Especially because, from my analysis, the leases are often 'front loaded' and they tenant is paying a higher than fair market value for the first X years of the lease. Additionally, in talking with numerous assessors, they do not agree on the methodology to be used in calculating FMV.

Thanks.